Bubble Wrap

Greenspan too rosy?

Despite positive comments from Greenspan, MarketWatch asks Has housing bottomed? Most economists say no.

Experts disagree over whether we’ve seen the bottom of the housing slump, or if it will get much worse, before it gets better.

Encouraging data on the housing market in the past few weeks have some observers insisting that the worst is over. But others say the small improvements are merely statistical blips and that the market still has much further to fall.

Depending on who’s right, the economy could either bounce back from the current soft patch and reaccelerate next year, or it could continue to weaken, forcing the Federal Reserve to cut interest rates to stave off an abrupt economic chill or an outright recession.