"We've looked at the bubble question and we've concluded that it is most unlikely," Greenspan said in response to a question before the House Financial Services Committee. He said the diversity of housing markets in the United States and the high transaction costs involved in selling a home -- including the need to move -- made a bubble developing "most unlikely."
Asked about a drop in consumer confidence found in a recent survey, Greenspan said the Fed watched what consumers did rather than what they said, and that surveys did not necessarily indicate how consumers were going to behave.