Here you are now. What?

Greenspan needs to learn to STFU

http://www.msnbc.msn.com/id/8647548/

In some of his strongest remarks yet about the potential fallout from high housing prices, Greenspan reiterated warnings about the increasing use of what he described as “exotic” mortgages and referred to “speculative fervor” that has driven up prices in some markets.

“This type of expansion in prices historically does not go on very long and indeed, while it’s hard to forecast, and I’m not sure that it’s going to occur, there may be -- there certainly will be in certain local areas -- price declines,” Greenspan said.

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Doesn't Greenspan realize the power his words have? The guy may have single-handedly created the 2001 recession with his doomsaying and overeager money restriction, then lifted the country out of it.

If he talks about bursting the housing bubble so very starkly, he may incite the crash. I'm not saying housing prices aren't overinflated or that they don't need to come down; I just think it can be handled more subtly than to yell "The Sky Is Falling!" from Capitol Hill.

Philo
Permalink Philo 
August 29th, 2005
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