Alan Greenspan was vocal over the weekend!

Former Fed Chairman, Alan Greenspan, was again vocal over the weekend, warning that the US housing slump is set to worsen. He warned, though, against cutting US rates too aggressively because of the risks to inflation. He also warned of downturn in UK house prices amid rising interest rates and a global credit crunch. 'There are going to be some difficulties,' Greenspan told the Telegraph in an interview. 'Can (the boom) last? No. You're already beginning to see the mortgage rates are moving; a lot of the two-year fixes are going beginning to unwind. It's going to turn, it's got to turn.' Greenspan also warned that Britain is more vulnerable to the effects of the credit crunch than the US. 'In Britain, the housing (market) hasn't turned yet, and the consumer households are more subject to interest rate changes than in the United States,' Greenspan said. Greenspan also said the invasion and occupation of Iraq is about oil. "I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil," Greenspan says in his memoirs. Greenspan is understood to believe that Saddam Hussein, the former Iraqi president, posed a threat to the security of oil supplies in the Middle East, the paper said. America and Britain have always insisted that the war had nothing to do with oil, and Bush said the aim was to disarm Iraq of weapons of mass destruction - which never existed - and end Saddam's support for terrorism.