Former Federal Reserve chairman Alan Greenspan said this week "Home prices in the U.S. are likely to start to stabilize or touch bottom sometime in the first half of 2009, prices could continue to drift lower through 2009 and beyond." Let's all hope he is right. But, a quick review of his past real estate bust comments, shows that this week's bottom call is Greenspan's third such prediction.
First in late 2006, the former fed head said: "I suspect that we are coming to the end of this downtrend, as applications for new mortgages, the most important series, have flattened out. I don't know, but I think the worst of this may well be over."
The second Greenspan call was in April 2008, when he 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."
Will this week's Greenspan market bottom call be any more accurate than his prior two calls? I personally hope so! But, I do have my doubts. It used to be that when Greenspan spoke one was never really sure of exactly what he was saying. Now, his latest comments are crystal clear…Hmm! San Diego income property sales
The downturn during the 1970s was caused primarily by Richard Nixon’s faulty economic policy. Among other things the imposition of widespread wage and price controls caused the extended recession of the 1970s we refer to today as stagflation. Oil prices played a role but it was the government’s response that truly put the United States over the edge. Unless the Government takes draconian measures like Nixon did to insulate the economy it doesn’t make sense to compare today’s situation to that of the 1970s. Acne Medicine Information
Shakespeare had it wrong… We should have killed all the economists…. San Diego CA Hotels
Housing prices and sales will continue to decline. Expect 3 years before the bottom, Commercial real-estate will suffer a steep decline as well. San Diego Real Estate Investments
If we look at the economic trends along with Real Estate market trends, we can realize that what may seem like a “bad market” for some people is the same market that “big” Real Estate Investors have bought the properties that made them millions. However, there are many people that are getting ready to capitalize on some great investing due to the common sense theory of investing, BUY LOW…SELL HIGH! San Diego Real Estate Sales
We must blame the President; surely he must have been wrong. We blame him for everything including continental drift, whenever there is a problem or a minor rift. San Diego Family Dentist