by Calculated Risk on 3/15/2007 02:23:00 PM

From CNNMoney: Greenspan: Subprime risk may spread

Former Federal Reserve Chairman Alan Greenspan said on Thursday there was a risk that rising defaults in subprime mortgage markets could spill over into other economic sectors.

Speaking to the Futures Industry Association, Greenspan conceded that it was "hard to find any such evidence" about spillover from housing yet. But he added: "You can't take 10 percent out of mortgage originations without some impact."
...
He said that subprime woes were "not a small issue" ...