The US housing bubble is going to poop sooner or later anyway. Better to have a smaller let down now than much larger one later, IMO.
Greenspan is apparently relying on more consumer spending which would take a hit with the end of housing boom, but wouldn't increased export orders counter this to some degree? Would reduce debt as well. This should be seen as step in the right direction and increased confidence - no pain, no gain. The recession we had to have?
If US consumers are getting into more debt ,relying on increasing housing prices then they need to wake up! Any economy that relies on a bubble market is DOOMED! I don't think Greenspan and others would be that dim.
One point i don't understand is, why the US would want to increase rates if the Us$ fell .. let it fall! .. SLOWLY! Surely US could handle an increase in debt via lowering $.
Although I don't know how you'd stop a dump of US$ if everyone knew it was in decent .... markets never fall gracefully, always off a cliff.
