BOCA RATON, Florida — Former Federal Reserve Chairman Alan Greenspan said on Thursday there was a risk that rising defaults in subprime mortgage markets could spill over into other economic sectors. Speaking to the Futures Industry Association, Greenspan conceded it was ‘hard to find any such evidence’ about spillover from housing yet, but added: ‘You can’t take 10 percent out of mortgage originations without some impact.’ Greenspan said the downturn in U.S. housing markets appeared to stem more from high housing prices than from a decline in mortgage quality but said he was not downplaying problems in so-called subprime loans. He said that subprime woes were ‘not a small issue’ and seemed to result primarily from buyers coming into lofty housing markets late after big price run-ups that had left them vulnerable to hikes in adjustable mortgage rates. Default rates in the subprime segment of the U.S. mortgage market have jumped in recent months as the housing industry slowed and prices fell. At least 20 lenders in the subprime mortgage sector, which serves borrowers with poor credit histories at high interest rates, have gone out of business as a result. The crisis has triggered […]