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Greenspan sees house price bottom in 2009

(Agencies)
Updated: 2008-08-14 16:45

As other economists do, Greenspan essentially seeks to gauge when it is rational to own a house and when it is rational to sell the house, invest the money elsewhere and rent an identical house next door.

Related readings:  House prices could fall for two years: Citigroup  US house prices seen falling 30%

In the past, Greenspan's crystal ball has been, at best, cloudy, the Wall Street Journal noted. He didn't foresee the sharp national decline in home prices. But recently released transcripts of Fed meetings do record him warning in November 2002: "It's hard to escape the conclusion that at some point our extraordinary housing boom...cannot continue indefinitely into the future."

Greenspan is currently promoting his book, the paperback version of which is to be issued next month with an epilogue.

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