Greenspan: Worst May Well Be Over for U.S. Housing
Bloomberg:
Greenspan Says `Worst' May Be Past in U.S. Housing
By Greg Quinn and Scott Lanman - October 6, 2006 17:30 EDT
Former Federal Reserve Chairman Alan Greenspan said the ``worst may well be over'' for the U.S. housing industry that's suffering its worst downturn in more than a decade.
Greenspan, speaking at a conference in Calgary today, pointed to a ``flattening out'' of weekly mortgage applications after they went down ``very dramatically.''
A longer and deeper U.S. housing slump may reduce consumer spending enough to push the economy into recession, some forecasters warn. Greenspan's comments may represent a more sanguine view than his successor, Ben S. Bernanke, who said two days ago in Washington that the market is in a ``substantial correction'' that will lop about a percentage point off economic growth in the second half and restrain the expansion next year.
Fed Vice Chairman Donald Kohn, a former top adviser to Greenspan, also said this week that while he doesn't know how long and deep the housing slump will be, it probably won't sink the U.S. economy into a recession...
LOL! Do check that date stamp, eh? H/T: Calculated Risk Blog
Greenspan Says `Worst' May Be Past in U.S. Housing
By Greg Quinn and Scott Lanman - October 6, 2006 17:30 EDT
Former Federal Reserve Chairman Alan Greenspan said the ``worst may well be over'' for the U.S. housing industry that's suffering its worst downturn in more than a decade.
Greenspan, speaking at a conference in Calgary today, pointed to a ``flattening out'' of weekly mortgage applications after they went down ``very dramatically.''
A longer and deeper U.S. housing slump may reduce consumer spending enough to push the economy into recession, some forecasters warn. Greenspan's comments may represent a more sanguine view than his successor, Ben S. Bernanke, who said two days ago in Washington that the market is in a ``substantial correction'' that will lop about a percentage point off economic growth in the second half and restrain the expansion next year.
Fed Vice Chairman Donald Kohn, a former top adviser to Greenspan, also said this week that while he doesn't know how long and deep the housing slump will be, it probably won't sink the U.S. economy into a recession...
LOL! Do check that date stamp, eh? H/T: Calculated Risk Blog