Greenspan: Home Prices to Bottom Next Year

Former Fed chief says the market needs to absorb excess inventory first.

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Former Fed chief Alan Greenspan is calling the bottom:

From MarketWatch via Housing Wire:

U.S. home prices will likely bottom out in early 2009 after the market absorbs excess inventories, former U.S. Federal Reserve Chairman Alan Greenspan told audiences in Asia Wednesday, according to news reports.

"There's an old saying that economists should be interpreted as contrarian indicators," Housing Wire's Paul Jackson says. "Something tells us that adage is doubly true in Greenspan's case."