Former Federal Reserve Chairman Alan Greenspan said Monday that troubles in the subprime lending market are unlikely to pose a significant threat to the overall housing sector, according to the Bloomberg news agency. Bloomberg also quoted Greenspan as saying, “the housing market is showing some tentative signs of stabilization.”

While some of Greenspan’s presentation focused on the positive aspects of the economy and housing market, he did report some rather grim news when he stated it was possible the economy could fall into a recession by the end of the year, according to Dow Jones.
Meanwhile, a new report from the National Association of Business Economics says while the “U.S. Economy appears to be transitioning to a sustainable growth path, housing is likely to remain the primary force dampening growth this year, particularly in the first half.”
Reuters news agency also reported Monday that concerns over a tumultuous subprime market and Greenspan’s warning of a recession prompted bonds to gain strength and U.S. Treasury prices to rise.