Alan Greenspan is busy denying any responsibility for the housing bubble. See here.
But a speech made by FED Governor Donald Kohn in 2004 says plainly that the FED was pursuing an easy money policy that was boosting housing prices. For example, “Long-term interest rates–the ones most relevant to the borrowing and spending decisions of households and firms–have been held down by easy monetary policy and the expectation that short-term rates will remain low for some time. And these low rates in turn have boosted the prices of houses and the value of corporate equity.”
