Alan Greenspan (remember him?) says the U.S. economy might go into recession before the end of 2007.
He may be right. The subprime mortgage market is getting whacked hard. And when people can’t buy at the bottom, it weakens the whole market structure. Prices fall. Jobs are lost. Spending declines. What we’re seeing so far is that people who can afford to do so are taking their houses off the market. This creates an invisible inventory of empty houses that will probably hold down prices for many months to come. Steadily, but surely, the millwheel of a correction will grind away.