Greenspan

by Steve Berg on March 6, 2007

Former FED Chairman Greenspan said today that there is a 33% chance of a recession by the end of the year. I guess that means that there is a 67% chance that there will be no recession by the end of the year. Just sounds better. My cup is half, er, 2/3 full.

ABOUT THE AUTHOR Steve Berg is Broker/Owner of San Diego Castles Realty. He is an awesome agent and an all-around great guy. When he is not dazzling clients, he contributes the occasional article here.

{ 9 comments… read them below or add one }

Phil Hoover March 6, 2007 at 5:28 pm: Oh no !!!!
I just knew it ~ Alan has had this recession planned all along and now here it is!
I guess this means the whole world is approaching the end, home values will inevitably plunge to zero, and we will all be living in tents on the beach.
Damn!!!!
How can this be happening to me anyway????
Steve Berg March 6, 2007 at 10:08 pm: Hi Phil – Thanks for your comment. Tents on the beach actually doesn’t sound so bad. Or in the mountains for that matter. Either way it’s great view property. Maybe Alan will join us in Ridin’ the Storm Out (credit to REO Speedwagon).
Phil Hoover March 6, 2007 at 10:18 pm: It is amusing to watch everyone wring their hands as they anticipate the end of real estate as we know it.
Many consumers and agents haven’t been around long enough to realize that real estate doesn’t necessarily appreciate rapidly forever.
Homes are not personal ATMs, they are a place to live.
Real estate is cyclical and everyone needs to understand that you can expect to have a hangover after after partying during the past five years of easy lending policies, rampant speculation, and runaway prices.
Best of all ~ markets like our current market help our clients appreciate the true value of an experienced agent.
Steve Berg March 7, 2007 at 7:51 pm: I couldn’t agree more. Like any time there is too much of a good thing, people start to take it for granted. The best reason for buying a home has always been and will always be for the long term benefit of enjoying it every day. That is the true value. Anything else is gravy.
Tyler Moxley March 12, 2007 at 12:37 pm: A few months ago he said the housing market had seen the worst it was going to offer. Maybe that still left a 33% change, but I like the way you said we will have a 67% of no recession!
Rich Homebuyer March 12, 2007 at 9:25 pm: Option One just killed all loans >90% LTV!! The spring flush is coming!!
Larry Cragun March 12, 2007 at 11:05 pm: I like Steves optimism.
Kris Berg March 13, 2007 at 8:03 am: Lar – We don’t call him Pollyanna for nothin’.
Rich Homebuyer March 13, 2007 at 9:21 am: All the people who bought a house in the last 2 yrs loves Steve’s optimism. Ignorance is bliss.
Follow the lender news for the inside look. It is ugly now and going to get much worse. I would hate to be a seller.