Sunday, August 3, 2008

The U.S. housing crisis is “nowhere near a bottom,”

The U.S. housing crisis is “nowhere near a bottom,” opined Alan Greenspan yesterday. In an interview with CNBC, Greenspan provided a litany of lackluster predictions: Chances of recession are still “50/50.” It will “take a while” for markets to stabilize. The U.S. will soon face “a very substantial change in the balance between growth and inflation.”

“Greenspan has no shame,” declares Agora’s Australian adviser Dan Denning. “He is monetary history's greatest villain since John Law. This is the same man who essentially called Americans morons for preferring fixed-rate over adjustable-rate mortgages. If Americans understood more how inflation destroys their money, and connected the dots between Greenspan's rate cutting and the current mess, he'd be forced to do his interviews from undisclosed locations for fear of being set upon by mobs of foreclosed homeowners.”

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