Here is a quick summary of what he says:
- There is a housing bubble
- The housing bubble is generally concentrated in big wealthy areas (notably California & Florida) .
- If housing bubble will burst
- When the housing bubble bursts "the economy would still be in big trouble"
- If housing prices start declining "pushing the economy right back into recession"
- Some say that there is no bubble. "But someone will always come up with reasons why seemingly absurd asset prices make sense."
- Alan Greenspan now ' admits that we have "characteristics of bubbles" in the housing market, but only "in certain areas." '
- " The important point to remember is that the bursting of the stock market bubble hurt lots of people - not just those who bought stocks near their peak. By the summer of 2003, private-sector employment was three million below its 2001 peak. And the job losses would have been much worse if the stock bubble hadn't been quickly replaced with a housing bubble."