Earlier this week, we noted that former Fed Chief Alan Greenspan had said that "the drop in US home prices will probably end ‘well before’ early next year as the number of houses in the market diminishes" (Greenspan ‘Reputation Tarnishment’ Tour Continues).
How good of a bottom caller in housing is The Maestro? A friend emails us this quote from, well, back a few years:
"I suspect that we are coming to the end of this downtrend, as applications for new mortgages, the most important series, have flattened out. I don’t know, but I think the worst of this may well be over."
-Alan Greenspan, October 6, 2006
The only thing he got right in that sentence was the phrase "I don’t know."
Greenspan sounds optimistic note on housing: report
MarketWatch 12:49 p.m. EDT Oct. 7, 2006
Has housing bottomed? Most economists say no
MarketWatch, 5:02 p.m. EDT Oct. 26, 2006