Froathy the Snowman

Greenspan Says Housing Prices Not Yet Near Bottom – Bloomberg.com – Steve Matthews – 31 July 08

Former Federal Reserve Chairman Alan Greenspan said falling U.S. home prices are “nowhere near the bottom” and the resulting market turmoil isn’t showing signs of abating…While the odds of a recession are 50-50, achieving stable markets will “take a while,” Greenspan said today in a CNBC interview….Fannie Mae and Freddie Mac, the largest sources of money for U.S. home loans, are a ”major accident waiting to happen,” Greenspan said. ”The solution” is the ”nationalization” of the companies, he said.

Hallelujah!!! Mr. Greenspan has finally cleaned the froath off of his glasses and has a clear view to the rear. Perhaps we should coin a new term and refer to a chain of bubbles and recessions mixed with a dash of credit crisis as a “Froathy Greenspan”.