Thursday, July 31, 2008

Chronicles Of Depression 2.0: #181

Greenspan Says Housing Prices Not Yet Near Bottom (Update1)
July 31 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said falling U.S. home prices are "nowhere near the bottom" and the resulting market turmoil isn't showing signs of abating.

While the odds of a recession are 50-50, achieving stable markets will "take a while," Greenspan said today in a CNBC interview.

Emphasis added by me.
Fannie Mae and Freddie Mac, the largest sources of money for U.S. home loans, are a "major accident waiting to happen," Greenspan said. "The solution" is the "nationalization" of the companies, he said.

Emphasis added by me.

And would that "nationalization" mean what it should: letting the investors drop dead as the good risk-takers they pretend to be?

Greenspan is now out of the government (don't quibble about the Fed being private). So why won't he speak freely? He did so once, behind closed doors:
“There’s been too much gaming of the system until it is broke. Capitalism is not working! There has been a corrupting of the system of capitalism.”

If he really did say there's a fifty-fifty chance of a recession, then he's being as mealy-mouthed as when he chaired the Fed. We don't need more of that. We need the truth, goddammit!

Previously here:

Chronicles Of Depression 2.0: #166
The Coming Big Bank Grab: Get Your Money NOW!

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