Greenspan on the Housing Market

Former Federal Reserve chairman Alan Greenspan says the U.S. housing market will begin to recover in the first half of 2009, according to an article he wrote for Emerging Markets magazine published recently. Greenspan wrote that the recent slowing in the rate of decline in U.S. home prices is the first positive note in the year-long trauma and that eventually, frozen credit markets will thaw "as frightened investors take tentative steps toward reengagement with risk."

"More conclusive signs of pending home price stability are likely to become visible in the first half of 2009," he wrote. Once the housing market finds its footing, markets will be able to tackle the core issues of the credit crisis.

Source: MSNBC.com; Reuters.com