Greenspan Worries About US Credit Market
The former chairman of the Federal Reserve has certainly kept himself busy preaching doom for US Markets.
In his latest public conference, he revealed a decreased amount of hope for US credit markets. Here’s a blurb from Bloomberg:
Former Federal Reserve Chairman Alan Greenspan said credit markets are in a “state of fear,” instead of a “state of euphoria” where investors are buying.
“We’re now in a state of fear,” Greenspan said in Chicago at the Midwest ACG Capital Connection conference, a gathering of investment bankers and private-equity companies. Greenspan was discussing commercial paper and structured investment vehicles.
Fed and U.S. Treasury officials have also said that it will take some time for confidence to return to markets for complex securities. Investors who depended on credit ratings companies to assess the debt now must struggle to come up with their own prices, Fed Chairman Ben S. Bernanke said Oct. 15.
Should credit supplies shrink, it will become hard to find affordable credit such as a Utah home equity loan.
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