Let's not fool ourselves....We are going to see some challenges ahead. Consider the opinion of Mr. Greenspan:

By
Real Estate Agent with RE-Source Realty Brokers, In.c

Let's not fool ourselves....We are going to see some challenges ahead.   Consider the opinion of Mr. Greenspan:

 

Greenspan's prediction on U.S. house prices

 

U.S. house prices are likely to fall significantly from their present levels, Alan Greenspan has told the Financial Times, admitting that there was a bubble in the U.S. housing market. In an interview ahead of the release this week of his widely-anticipated memoirs, the former chairman of the Federal Reserve said the decline in house prices "is going to be larger than most people expect."


But Greenspan said that his successors at the Fed - who meet this week to set interest rates - would have to be careful not to ease rates too aggressively, because the risk of an "inflationary resurgence" was greater now than when he was Fed chief. Greenspan said he would expect "as a minimum, large single-digit" percentage declines in U.S. house prices from peak to trough and added that he would not be surprised if the fall was "in double digits."


Note: At press time, the Federal Open Market Committee has just announced a half-percentage point cut in the federal-funds rate.

 

Your blogging friend, Bill McDaniel

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