Tuesday, April 8, 2008

Greenspan on the "housing recovery."

Greenspan has been getting some press lately, attempting to defend his record. Today Bloomberg reports that Greenspan thinks the housing mess is coming to an end:

April 8, 2008 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the drop in U.S. home prices will probably end ``well before'' early next year as the number of houses on the market diminishes, aiding an economic rebound.

``It will not be until early 2009 that we will get close to having eliminated most of this'' home inventory Greenspan told a conference in Tokyo today sponsored by Deutsche Bank AG and co-hosted by Bloomberg LP. ``But it is very likely that home prices will stabilize well before that.''

Greenspan added that the extent of damage stemming from the collapse of the subprime-mortgage market won't be known for months. He described the credit crisis as the worst in 50 years, echoing the assessment of International Monetary Fund economists.

It's his annual speech! Anyone remember his comments last year?

Feb 17, 2007
Former Federal Reserve chairman Alan Greenspan said the U.S. housing slowdown may be coming to an end, citing sales of new homes.

"I think the worst is behind us," Greenspan, 80, told a Toronto conference Wednesday, during a speech broadcast live via satellite. "We are in the midst of a very significant inventory liquidation of unsold new homes."

Greenspan's comments represent a view similar to those of his successor, Ben S. Bernanke. Bernanke told the Senate Banking Committee this week that the Fed expects economic growth to strengthen "somewhat as the drag from housing diminishes."

No comments: