This is so good we have to post it even though it was reported in the media a few days ago.

By now everybody is talking about the rising yields of bonds and as a result mortgages — definitely not a positive development for an already weak U.S. real estate market perhaps induced and now exacerbated by struggling home owners with ARMs expiring.

Anyway, Reuters reported Greenspan was asked at a commercial real estate investor conference whether he was worried about China selling off a portion of its Treasury holdings and pushing rates/yields even higher.

Greenspan’s response partially paraphrased from media reports: “I wouldn’t be (worried), no.” Because China wouldn’t have anyone to sell to. (emphasis added)