The great boom in US house prices that abruptly petered out in recent months was caused by increased global integration, not loose monetary policy, Alan Greenspan, the former chairman of the Federal Reserve, has claimed.

“I don’t think that the boom came from a 1 per cent Fed funds rate or from the Fed’s easing. It came from the collapse of the Berlin Wall,” Mr Greenspan told a private audience in Canada on Friday.

You can read the rest of it on MSNBC’s site.

YEAH RIGHT! The article also says that he think the worst of the he housing correction may already be over. I don’t see how this is possible, seeing as the price correction has barely begun. Real Estate is a slow trend. Once it picks a direction, it normally sticks to it for several years. Once its heading down, prices should over-correct to the point of being ridiculously cheap.