What's on Greenspan's Mind?

Low mortgage rates make no sense, the Fed chief says. Here's why he's wrong

Alan Greenspan raised interest rates. Again. Nobody noticed. Again. This has been going on for a year--nine rate boosts, all met with indifference by the financial markets. If the trend lasts much longer, the housing bubble will graduate to a full-size blimp, and there may be no avoiding its fiery crash.

Alarmist? Perhaps. Yet the Federal Reserve Chairman clearly harbors thoughts of disaster. He's been speaking of "froth" in the housing market for weeks, and--unable to coax mortgage rates higher--has publicly admitted that he doesn't know how to regain his grip on the economy. In February he called the situation a...

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