Getting your player ready...
Former Federal Reserve Chairman Alan Greenspan said falling U.S. home prices are “nowhere near the bottom” and the resulting market turmoil isn’t showing signs of abating.
While the odds of a recession are 50-50, achieving stable markets will “take awhile,” Greenspan said Thursday in a CNBC interview.
Fannie Mae and Freddie Mac, the largest sources of money for U.S. home loans, are a “major accident waiting to happen,” Greenspan said.
“The solution” is the “nationalization” of the companies, a restructuring involving an infusion of taxpayer money and eventual sale back to the market as “five or 10 separate entities,” he said.
