But Greenspan cautioned that even at a bottom “prices could continue to drift lower through 2009 and beyond.”

^ If they could continue to drift lower then it’s not a bottom Mr Idiot Greenspan with your double speak.

We must realize that Greenspan is another idiot who helped created the bubble by keeping rates very low while everyone used home equity as an ATM to fuel the economy. I blame the banks first for loaning money to unqualified people, but Greenspan should have used more oversight and spoke out about lending practices.

If it was a realtor what’s he/she doing reading this blog? Things that slow or just trying to educate him/herself on the Arcadia RE market? LOL!

If anyone wants to complain they should take it up with the bank board of directors who were asleep at the switch and with the SEC for the same.

Home prices were artificially high back in the mid-late 2000s, now they are coming back to reality. You are just reporting the news.

I have met many of these analysts and all of them are singing a completely different tune now.

I guess my point is that even those who claimed there was no bubble 2 years ago are now facing the reality of the situation.

Great article by the way. You would almost think it was written with a sarcastic tone. The authors address fundamental values but 2 paragraphs later they throw it out the window.

The Arcadian, during the height of the market in 2006, there were many prominent economists and analysts who preached that there was no bubble. Here is a paper by Harvard trained economists Gary and Margaret Smith, economic professors at the prestigious Pomona College:

http://www.brookings.edu/es/commentary/journals/bpea_macro/forum/bpea200603_smith.pdf

The Smiths assert that so long as people are willing to shell out the $ for the property (supply meets demand), the $ is justified by non financial factors such as “privacy of home ownership,” and “reaping benefits of home improvement.” Looking back to 2006 w/20/20 vision, this all begins to sound like a ponzi scheme to me.

http://www.reuters.com/article/businessNews/idUSN1350807020080813

“You all are idiots, I have a knife-catcher for this property…”