Greenspan earlier this year when the dementia medicine was working, with a truly brilliant observation:
Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher prices.
This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums
Greenspan last week after falling back into dementia, with a bizarre prediction:
"I suspect that we are coming to the end of this downtrend, as applications for new mortgages, the most important series, have flattened out. There is a good chance of coming out of this in good shape, but average housing prices are likely to be down this year relative to 2005. I don't know, but I think the worst of this may well be over"
Greenspan before being diagnosed with dementia in 2004, oddly recommending people get into ARMs right when he went on a record string of interest rate hikes:
"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage," Greenspan said.
October 09, 2006
Now back to the bizarre rantings of Mr. Bubble, Alan Greenspan: Housing crash over - everyone back in the pool!!!
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45 comments:
"everyone back in the pool!!! "
hahahahhahah jesus
F that POS Greenspan, we all still need at least a return to 2000 levels.
Ah, Greenspan always talks in riddles and the market listens. Does he know something we don't? I think the Fed is about to lower rates, China will buy more bonds, interest rates on home loans will fall, and American's will go on a shopping spree.
did he ever say the nasdaq bubble was done popping when it was down like 5% or so?
House price inflation rises again
Prices have been rising fastest in Northern Ireland
House prices rose sharply in August, according to the latest monthly survey from the Department of Communities & Local Government (DCLG).
Prices rose by 1.6% in August, pushing the annual rate of house price inflation up from 6% to 7.7%.
The cost of the average UK property has now risen to £197,631.
Prices accelerated fastest in Northern Ireland, where they have risen 25.9% in the past year, with Scotland up by 12.8%, Wales 7.1% and England by 7%.
Of the four, Wales was the only area where the annual inflation rate dropped, slipping from July's rate of 7.4%.
The figures from the DCLG tell a similar story to all of the other main indicators of house market activity.
Both the Nationwide and Halifax surveys have shown similar price increases over the past year, interest from would-be buyers is strong according to the Royal Institution of Chartered Surveyors, and mortgage approvals are still high, indicating buoyant demand in the coming months.
Bungalow boon
The acceleration of prices in Northern Ireland has again made it the second most expensive property market in the UK.
COST OF AVERAGE PROPERTY, AUGUST 2006
England £205,556
N Ireland £166,398
Wales £158,028
Scotland £145,490
UK overall £197,631
Source: DCLG
The DCLG figures suggest that bungalows are the type of property most in-demand.
Check out this BBC article. Let me see, the UK's average home price in dollars is way above the US national average, not to mention you get squat for those prices, have been shooting up at double digit rates, slowed last year, and now prices accelerating again. I think Greenspan knows this is what is going to happen here too.
The cost of these shot up by 5.1% in August alone, followed by detached houses which saw their prices rise by 3.2%.
The average first-time buyer in the UK paid £152,172 for their property, the DCLG said, 6.9% more than a year ago.
E-mail this to a friend
People don't have $$$ to afford mortgages on houses anymore. Why else do you think they resorted to those introductory interest rates, neg-am morgages and all that?
It was because HOUSES ARE TOO EXPENSIVE for people to afford.
If people rush back in now, it's only prolonging the inevitable. Unless wages increase house prices are unsustainable.
Greenspan needs to shut his mouth now.
Maybe he said that as a favor to George Bush and the Republicans right before the election?
Greenspan, do us all a favor and shut the f*ck up! And cover your ugly face with a paper bag whenever you go out in public.
Greenspan also supports offshoring of American jobs and says this is good for America.
The guy is an overrated fruit-cake and it's amazing how economists still worship him like a god.
FoxWoodLief,
Do you have a point or do you only copy and paste propaganda articles from realitor websites.
"Maybe he said that as a favor to George Bush and the Republicans right before the election? "
High house prices are not a favor to many Americans That's what they do not understand.
no, high housing prices are a favor to everyone...except for the losers who didnt have the wherewithall to buy..
"no, high housing prices are a favor to everyone...except for the losers who didnt have the wherewithall to buy.. "
Piss off, scumbag!
foxwoodlief my AS*!
Gee, if things are good in orthern Ireland than things are great in the U.S.
Lief, Do you thing that rising home prices in Halifax is an indication that home prices in California and Florida will also rise?
Well guys, you gotta realise that greenspan is jewish. And what do jews do ladies and gentlemen? THEY LIE! So, the lying scumbag jew, greenspan, is just doing what comes natural to all jews. Understand?
Actually pretty much everybody lies. Other cultures think telling the truth is weakness.
It is a sad day when antisemitic
venom finds an audience in a
comment section. Look into yourself for the source of your
hatred. Disappointed with your
life? Perhaps you've been locked
out of purchasing a home? Or maybe you're just a raging blamer.
Anyone stupid enough to buy in this market wouldn’t know who Greenspan is anyway. Fortunately!
Where is all this pathetic bitterness coming from? Wished
you'd studied harder in school?
I agree that we may all be in for
some hard times. And a lack of
civility will make it all that much
harder. Get a Ph.D. in economics
and you too can buy a house.
" Where is all this pathetic bitterness coming from? Wished
you'd studied harder in school?
I agree that we may all be in for
some hard times. And a lack of
civility will make it all that much
harder. Get a Ph.D. in economics
and you too can buy a house."
Pathetic bitterness ... watching morons run the country and borrow a ton of money, running huge deficits, building up a huge real estate bubble which could crash and destroy the entire country's economy ... you're calling that pathetic bitterness?
Scumbags like you should be taken out and given 40 lashes for gross stupidity.
You're the funniest I've seen today
since watching the Columbia University baby lefties justifying
their inability to follow the rules
of logic.
..... printing press full force ahead : more Monopoly(R) money coming your way.
"It is a sad day when antisemitic
venom finds an audience in a
comment section. Look into yourself for the source of your
hatred. Disappointed with your
life? Perhaps you've been locked
out of purchasing a home? Or maybe you're just a raging blamer. "
WHAT IN THE HELL DOES ANTI-SEMITISM HAVE TO DO WITH GREENSPAN'S LIES?
Greenspan will probably go down in history as one of the imcompetant fed chairs we have ever had. His inability to comumicate with common people goes hand-in-hand with inablility to identify with the problems of middle-class people.
Are you trying to justify the behavior of Alan Greenspan?
What else would you expect from a slimy Republican dirtbag?
I'm curious about what Greenspan
lied about. I am also uneasy with
any present or former government
official trying to soothe us, it
makes me suspect the motives. So, what exactly did Greenspan lie about? You may not remember the
tenure of Fed Chief Burns under the
Carter administration. For those
of us who lived through that economic nightmare, Greenspan shines in comparison.
I'm curious about what Greenspan lied about.
Ummm... maybe when he stated that the worst is behind us.
You may not remember the
tenure of Fed Chief Burns under the
Carter administration. For those
of us who lived through that economic nightmare, Greenspan shines in comparison.
I would gladly trade the carter economy for what we have today -- good jobs going offshore, the filthy rich dictating how the rest of us should live, and the demise of the middle-class.
I think Greenspan is smoking crack in his old age...
I read today in the business Weekly, that the median income per household here in Reno is 42K!
There is nowhere for prices to go but down...sorry sellers, but you have been had.
There were opportunities to profit on the way up,and there are opportunities on the way down.Who's bitter?
Greenspan is a whole different story.
1st-Greenspan's timimg
2nd-His messege
3rd-The dow record high although the 30 stocks on the Dow are down an avg20% from their record highs.
4th-The Dollar cabal is not in control.
Get an education in school??Bwahhahhahahaha
I hope it never gets as bad as it
did under Carter/Arthur Burns. The
origin was probably with the money
printing machine that financed the
war in Viet Nam. I believe uncontrolled inflation was
the origin of the necessity for
two income families. Huge changes for how families could nurture their children. Big,
big long term social consequences.
I hope you are wrong about our current situation and will grant
that you could be right. My point
is we don't know yet. I agree that
the trend is not good. To the
poster who responded to my Columbia
baby leftie comment....I am a registered Democrat and that is how
I've voted since McGovern Shriver.
I care enough about liberal ideals
to wince at the thought of shutting
out free speech AT A UNIVERSITY!! When did liberals become so intolerant?
I have to admit, there is something
innately admirable about that
attitude.
i think greenspan's age is catching up on him. pretty soon, he won't remember what he had for breakfast on the same day.
Susan Ryan is back at it on the Seattle Post Intelligencer.
Let the HP abuse begin!
Wish my salary doubled too ... like the house` prices !!!
Part of post was either deleted or didn't post. The point was I was on BBC today and several articles about the housing market in Britain and Ireland surging upwards again.
The point? Do you think a Brit or an Irishman makes more money than the typical American? Second, do you think that the house they buy is better, larger, or intrinsically worth more than a house in the USA?
Third, since the houses there, based on national averages, not individual markets (so LA and London may be higher), their prices converted into dollars is well over $300,000 for a typical small flat.
So? Do you really think Greenspan and cronies are ready to give up yet? Not if they can pump a little more air into the market.
Finally, I am first in line to say home prices bear no relationship to incomes, rent, or value in most of America. Still, it doesn't matter what I think. I've been wrong for years.
I've been telling my parent's for 30 years that their house in the bay area is no way worth what neighboring homes have been worth and it is up to a mil from the late 70s when it was worth almost $100,000.
Homes in Phoenix (and I do believe, maybe because I want vindication, that they will come down) are still higher than when I sold my house in March of 2005 when I thought a 30% rise in two years was unsustainable and homes on my block there have still sold for 15% above what I sold for, and that is after this so called "melt down".
So in the end, I'm just a confused fox. My beliefs in a bubble, my beliefs that prices will fall, are no different than those who believe the "end of the world" is upon us. We all are still waiting.
foxwoodlief: "Does he [Greenspan] know something we don't?"
Well, perhaps he knows something about how to promote wishful thinking on a public what dont ask for anything more. Check this graph:
http://photos1.blogger.com/blogger/6089/1833/1600/shiller.0.gif
http://photos1.blogger.com/
blogger/6089/1833/1600/shiller.0.gif
It's so obvious. Just another arse covering exercise by the machiavellian Maestro.
Read between the lines. "If I was still in charge I would engineer a soft landing, but unfortunately Little Benny is now in charge and if it all turns to crap it is his fault".
Little Boy Scout Benny has been set up to take the blame. Greenspan street smarts versus the unbelievably naive academic dreamworld of Little Benny.
Greenspan knows the whole thing is going to tank.
I think we should all start feeling sorry for Little Benny.
You all are a bunch of idiots.
Inventory is being reduced as we speak.
Pull your heads out of your butt and learn to use your mond. Stop following the shoe shine boy.
I pronounce this to be end of the real estate slump.
I agree with dogcrap.
Little Benny will save us.
You know those 100% to 300% gains over the past three or four years they are chickenshit. The real gains are yet to come. Don't miss out. Get in now.
I can almost guarantee that a $500000 home will be worth between $1M and $2M in 12 months.
Don't miss out.
Dog Crap wrote:
"You all are a bunch of idiots."
Another brain-dead brain-fart from the worthless troll.
Keith, why don't you kick this piece of crap off your blog? He has nothing of substance to contribute.
y2k never came and housing COULD stay flat and wait for income and rent to catch up.
What's wrong with the town hooker?
I mean isn't it better to see a hooker than to be dating an Ally McBeal/Sex In The City/Desperate Housewives witch who'll take control of both your life and financial resources in return for guilt trips and pathetic attempts at a 'need to belong' scenario?
dogcrap perhaps you'd be interested to see inventory numbers (climbing) at bubbletracking.blogspot.com
how flat-earthers avoid data they don't want to see baffles me
When Dogcrap proclaimed we were in a state of deflation. We all laughed at him because he made his proclomation on the day we were told we were at the highest rate of inflation in years - HE WAS RIGHT IT JUST TOOK 1 MONTH FOR THE TRUTH TO CATCH UP WITH WHAT HE SAW.
NOW HE SAYS HOUSE INVENTORIES ARE CRASHING. My bet is he knows something.
Anyone know what's up with TOL today?
Greenspan's speach was all about getting the price of the homebuilder stocks back up...and it worked..at least for a few days.
Lotta insiders need to sell, don't ya know?
Now, run along and buy some Toll Brothers stock...also Centex, Lennar and, the best of all, WCI Communities before it goes Kara on us.
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