Ex-SD: I think when you step back and look at the picture in it’s totality, it becomes almost terrifying. Taking individually, the situation is somewhat manageable, in that we can sustain certain losses in certain industries and the size and strength of the US economy will carry us through.
But when you look at Citi being bailed out, Merrill being bailed out, Bear Stearns taking the first loss in their history, MBIA and Ambac getting crucified, share prices of major homebuilders tumbling, the government and the FED throwing everything at the wall (and none of it working), Fannie and Freddie bleeding, etc, etc, etc and realize that we are only about 20% of the way through… Jesus.
I read that article about the RE/MAX office in Arizona, too. There was another one about the largest, most successful Realtor in Las Vegas going under.
This is not confined solely to the RE market, and it is spreading to the entire economy, as well as hitting Europe. The ECB pumped $500BN into their system, and it had nearly no effect.
As far as what Greenspan is saying: I think you and I both know what his prognostications are worth. That and a quarter won’t get you a cup of coffee, as the old man used to say.
