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.....
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.....
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