Greenspan speaks

One of the few people in Bush's administration, if you count Alan Greenspan, the (former)Federal Reseve Chairman, who actually know what he was talking about, had a few words to say last night. After saying he thought the country was headed into recession, he also said----
The collapse of the housing market, sour mortgage investments and much harder-to-get credit are weighing heavily on the economy. Foreclosures have hit record highs, and banks have racked up multibillion-dollar losses.
Greenspan said he thinks the housing market will continue to erode until the cause of the deterioration ends.
“Where all the problem is coming from is the continuous marking down of the value of those subprime securities,” he said. “Until we stabilize the price level of homes ... you’re going to continuously get loss estimates” from banks and other financial institutions.
When might the housing crisis hit rock bottom, Yergin asked.
The country still has “a long way to go,” Greenspan responded.

Smart man, that Alan Greenspan.....

Comments

Anonymous said…
Why say we're "heading into recession" when we're already there? There are families with jobs living in their cars because they cannot afford their mortgage, for God's sake! We're being taxed to death; schools cannot get levies passed and must cut activities, including bus service; police and fire services are being cut because the average home owner votes no on tax increases; families cannot afford medical insurance; the list is endless, Stevo. I don't know what world Greenspan is living in, but most of America is living in poverty or near there, thanks to recession.
Fam Guy said…
And you know what? When we are in a depression, the recession is gonna look pretty good. Thanks again, George....

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