The US housing market crisis is not the result of Federal Reserve policies but part of a global phenomenon, former Fed chair Alan Greenspan says. "I have no particular regrets," he said yesterday in Oslo. "The housing bubble is not a reflection of what we did, as it is a global phenomenon," Bloomberg reports.
Furthermore, “no one expected” the subprime collapse, Greenspan adds, asserting the problem is over for one excellent reason: "It went to zero and can't get any lower.'' Economists are divided over Greenspan’s 18-year reign; some say dropping the Fed funds rate to 1% was an important contributor to the housing boom.