“A DESTABILISING contraction in nationwide house prices does not seem the most probable outcome...nominal house prices in the aggregate have rarely fallen and certainly not by very much.” Alan Greenspan, 2005
The maestro himself uttered these very words. Greenspan, along with every self-serving real estate agent and mortgage broker seemed to believe we had somehow entered a new era of financial invulnerabilty.
Didn't we hear these same sort of word from the now all discredited stock analyst during the dot-com bubble of the late 90's? Looks like Greenspan was just another shill for Bush and company.

Greenspan's comments came from a story in The Economist that noted today's real estate market declines were last seen during the Great Depression:
Unfortunately, new figures this week reveal that house prices have already fallen by more over the past 12 months than in any year during the Great Depression. The S&P/Case-Shiller national index fell by 14.1% in the year to the first quarter. Admittedly, other property indices show smaller drops, but most economists now favour this measure. The index goes back only 20 years, but Robert Shiller, an economist at Yale University and co-inventor of the index, has compiled a version that stretches back more than a century. This shows that the latest fall in nominal prices is already much bigger than the 10.5% drop in 1932, at the worst point of the Depression.Meanwhile, things in Elk Grove are continuing to reflect the real estate meltdown. According to Data Quick News, real estate prices in Elk Grove dropped 32% annually from April '07. The median price dropped from $407,000 to $278,500
As if things weren't bad enough, gas prices continue to spiral out of control. Gas prices have reached as high as $4.39/gal. in Elk Grove.
Can $5.00/gal be far behind?




















(Palm trees in Northern California? A dead give away that someone in the Midwest designed this barn.)
