Will US Plunge Into Recession? overhang of property bringing U.S. house prices down

While many have their opinion, it is a bit early to say that the US economy will plunge into recession but a big overhang of property will bring U.S. house prices down.

Austrian magazine Format had an interview with Greenspan and they have been quoted as saying that the blame for the house price bubble lies with low interest rates over the past 15 years.

Central banks have been powerless to bring house prices back under control, Greenspan said “Many buildings which just have been finished can’t be sold”.

They also went on to say “So far, prices have dropped only slightly. But it was enough to cause alarm around the world”.

The opinion of most is that house prices are going to fall much lower yet and it’s this news that is going to affect many not just in the US, but all around the world.

The future is not certain, but it does not look good.

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