I read this aritcle in the October 2007 issue of Fortune magazine. It is a Q&A with Alan Greenspan.
Q: What should the average American who owns a home be thinking right now? Should he/she be scared?
A: Well, there is no question that there is an overhang of inventories, especially newly constructed, unoccupied single-family homes. I judge there are about 200,000 units that are excess. And at this rate we’re going now, we’re running off a very small number of these inventories a month. These units are going to overhang the structure and move prices inexorable lower. So I think we’re going through a period that is not over yet, and it’s important that we bring this to an end sooner rather than later, because it has a corrosive effect on the economy.
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