Greenspan himself pipes up optimistically about housing

Saturday note - friend Larry seems to be averaging a couple posts per week (latest here) about the non-crash of the housing markets.

Only 52 days ago on August 16, I posted "Where are the Contrarians in this Market?" because very few economists, pundits, realtors... anyone... was going out on a limb to say the housing market was NOT teetering on a cliff, and there was no bubble...
that day in August, Lar found one slightly optimistic article out of 15 with the mild quote implying the next nine months would be a buyer's opportunity (in Orlando), after which prices would rebound.  Makes me wish there was a "mass hysteria" time machine that transports you back 52 days ago so you can remember how depressed everyone in the real estate industry was. It's the same feeling we had on September 15, 2001 when we looked at the Golden Gate Bridge and speculated how long it would remain standing.

Yesterday, no less than Alan Greenspan says the "worst may well be over" for the US housing industry. Nowadays, San Francisco realtors casually mention to me - "oh yeah, multiple offers never disappeared"... everyone has forgotten, or at least suppressed the anxiety. Just one more proof that today's economy can turn on a dime, figuratively speaking... and another example that we should never forget mass media not only mirrors, but determines how the masses think. Not that we should deny the bubble threat, it does exist but the folks in charge of running the economy seem to be monitoring the threat well enough.

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