"It's hard to escape the conclusion that at some point our extraordinary housing boom...cannot continue indefinitely into the future." —Alan Greenspan, November 2002
In other Greenspan news:
He thinks the housing bottom is right around the corner. (Housing bulls might as well start quoting Annie, because the housing bottom is always a day away.)
Greenspan also says that instead of bailing out Fannie Mae and Freddie Mac shareholders, any government bailout should wipe out shareholders, break the companies into 5-10 smaller companies, and then sell them back into the stock market. I agree with Greenspan on this point. The enormous size of these two companies creates a serious systemic risk to the U.S. economy.
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"(Housing bulls might as well start quoting Annie, because the housing bottom is always a day away.)"
ReplyDeleteSounds a lot like "real estate values will rise forever!", except in reverse.
Bubbles. They're funny. They even run in reverse.
Well splitting them up would help with the problem that they are too politically powerful to effectively regulate.
ReplyDelete--Jim A