Greenspan Calls For Cash Infusion To Help Struggling Homeowners

Sunday, December 16th 2007, 3:01 pm
By: News On 6

WASHINGTON (AP) Former Federal Reserve Chairman Alan Greenspan has suggested that a tax break or other government financial help for homeowners facing the mortgage crunch would be the best political fix for the economy.

Appearing on ABC's ``This Week,'' Greenspan did not specifically call for a tax cut. Instead, he called for the government to apply money to the severe housing market slump. Such a cash infusion would typically come through a tax break or a new government spending program.

Separately, Greenspan said he was concerned about signs of a resurgence of inflation, adding that the Federal Reserve needs to do ``what it has to do'' to suppress the inflation rates he sees emerging.