Alan Greenspan caused the market to reverse its downward trend today when he was speaking to the National Association of Realtors (NAR) when he said that housing was stabilizing.
Oh joy, the man who caused the bubble and didn’t see a bubble forming is calling for a bottom. During the speech, he reiterated that he did not cause the housing bubble. Technically, this is true. He just created a massive liquidity bubble. It was us who took the liquidity and put it into housing. But, I really think the market should not rally based on what Easy Al says. Personally, I think he is praying for some stability cause he knows history will not judge him well, especially if we suffer a long downturn due to deleveraging.