http://www.upi.com/NewsTrack/view.ph...7-082337-5292r
Quote:
Bernanke sees no housing bubble in U.S.
WASHINGTON, Oct. 27 (UPI) -- The man nominated to be the next head of the U.S. Federal Reserve shares the current leader's view that there is no housing price bubble.
Ben S. Bernanke, whom President Bush has tapped to succeed Fed Chairman Alan Greenspan, recently told Congress that current high housing prices "largely reflect strong economic fundaments."
In other words, strong demand relative to supply -- not a swarm of speculators -- is driving prices up, The Washington Post reported Thursday.
Greenspan's view is similar, if not identical. He concedes that there is "froth" in some markets but nothing to worry about.
Members of the Senate Banking Committee may draw Bernanke out on the topic when his confirmation hearing begins.
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I find this shared belief disturbing. It reminds me of some of the optimistic econmists comments in the early parts of the market bubble back in the 90s...
Then again, I suppose speaking too loudly on such subjects prior to being confirmed would have massive and dangerous impacts on the economic markets.