(minyanville.com) In a Wall Street Journal article headlined "Greenspan Sees Bottom in Housing, Criticizes Bailout" former Federal Reserve chairman Alan Greenspan said: "Home prices in the US are likely to start to stabilize or touch bottom sometime in the first half of 2009."
He did leave himself some wiggle room, as he also noted: "Prices could continue to drift lower through 2009 and beyond."
Of course, we shouldn't forget that this is the same man who in October of 2006 opined: "I think the worst of this [housing problem] may well be over."
As I noted in my book and often in this column, while Greenspan was in office, he went to great lengths to suggest that housing couldn't experience a bubble. And, as the Journal pointed out, he also tried to make the case in 2004 -- when many of us were already certain that a disastrous bubble was in full bloom -- that "a national severe price distortion seems most unlikely in the United States, given its size and diversity."
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