Posted on 05/18/2006 7:34:39 PM PDT by doc30
NEW YORK (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Thursday that the "extraordinary" boom in the U.S. housing market in recent years is over.
"This has been quite an extraordinary boom," Greenspan told a Bond Market Association dinner in New York. "The boom is over. I think we can safely say that with a strong degree of confidence."
Greenspan said there was a "high degree of froth in the system," and that it was clear that home equity extraction and the turnover of home sales was waning.
(Excerpt) Read more at today.reuters.com ...
Aren't they owned by Saudi Arabian interests that are heavily invested in tents anyway?
His judgement? What about HERS!
Big boom
Well, he used to have extraordinary access to the relevant information - probably one of the best positions to get a big picture. Does not mean that he gets it right, but does mean that he's [or used to be] better informed than almost all.
Well, he sure picked a fine time to learn how to speak english...
The US says Greenspan's relevance is over.
Duh, yeah Greenie. After the fed jacked rates how many times in a row, you're darn right the bloom is off.
Then I guess we better send the alien construction workers back home because there won't be enough homes for them and also citizen construction workers to build.
This might be helpful ?
http://www.freerepublic.com/focus/f-news/1111944/posts
Does this mean my 4 year old house won't tripple again in value in the next 3 years like it did in the last 3 years?
Don't know, but I can tell you that our market in Va is bust, house for-sale ads have gone from 2 pages to 4 pages in local Sunday paper.
I'm just hoping mine doesn't go back down to what I paid for it!
susie
thanks
Happily, Greenspan is over. What a doofus!
Yup, that's exactly what it means.
There's only so many houses people can buy -- and at a price they can afford. Housing doesn't always go up -- just like stocks don't always go up. But there is always something going up, and something going down -- causing people to adapt.
That's what they call market forces. Some people think all one has to do is pass laws to regulate prices and they can ignore market forces.
So in places like Hawaii, they pass gas cap laws and prices go up -- and so they remove them and wonder why prices aren't going down. It's because price caps don't control prices -- market forces do. They have to adapt and reduce their demand to cause prices to adapt to the new demand. It's because gas price caps don't work that it doesn't matter whether they're in force or not.
They have to change the demand, which is adapting to the market -- and not passing laws demanding the market sells them unlimited gas at the price they want to pay.
filing
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