Learning Greenspeak. This was posted by an anonymous commentator on The Housing Bubble Blog
"Whether home prices on average for the nation as a whole are overvalued relative to underlying determinants is difficult to ascertain. Among other indicators, the significant rise in purchases of homes for investment since 2001 seems to have charged some regional markets with speculative fervor.
We certainly cannot rule out declines in home prices, especially in some local markets. If declines were to occur, they likely would be accompanied by some economic stress, though the macroeconomic implications need not be substantial."
The anonymous poster comments: " You must admire his language. We must all learn Greenspeak. " Later on in the comments section green eggs and spam said...
Greenspan always shellacs his language with carefully worded conditionals and disclaimers... and then softens and rosies it up so as not to be blamed for inciting any panic-based movement.
Therefore, when he goes on record with this kind of bearish warning, you can bet that he privately sees the situation as much more problematic.
Thanks for you outstanding input. Exactly. Well said.