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August 26, 2005
Greenspan speaks on housing boom, Fri., August 26, 2005, 10:17 AM
In a conference this morning at a Wyoming resort, where the mountains really are mountains, and not molehills, Fed chair Alan Greenspan spoke out against the housing boom. He called the phenomenon an economic imbalance, caused by investors' imprudent acceptance of high risk that would end badly. Neither the stock or bond market liked that dose of reality, which is described here by MarketWatch:
I have been saying the same thing for a while now, but who am I to say. Every time I even make reference to this problem, I receive a wad of hate mail from real estate and mortgage brokers.
But, the proof is always in the pudding.
The Dow 30 is presently off "45 points, and the writing is on the wall. It may rally for a few moments, but the cycle is clearly down. The three-year trend line that I drew for you a couple days ago is now close to being intersected by falling share prices.
Listen to Greenspan. He has a better track record than Wall Street.
Oh, oh. More hate mail to come.
Posted by Posted by Bill Cara on August 26, 2005 10:15:45 AM | Category: Cara Today in the Market
I do not want to be seen as profiting from someone else's pain but the quicker these "adjustments in prices, interest rates and exchange rates" come,the happier I will be. If he can pull that off without related decreases in "output, income and employment" he is God not Greenspan. The items are related unless my classes at Cara.com are wrong.:)
Posted by: Mark at August 26, 2005 10:32 AM [link]