Double Dip in Home Prices Could Lead to New Recession

Alan Greenspan predicts a double dip recession

Alan Greenspan’s prognostic opinion over the weekend on NBC’s “Meet the Press” that a further drop in home prices could lead to a second or double-dip recession was a rather duh moment in the news of domestic economics.

With a battered and emotionally fragile economy, any negative headline news, like a further decrease in home values, will suppress investor and consumer confidence … and so goes the economy.

Emotions aside, the future of the housing market looks to be one that dredges a saw-toothed bottom for quite sometime, so if Mr. Greenspan is right … double-dip recession, the U.S. economy cometh. It’s time to prepare everyone’s expectations that the housing market isn’t set for growth and mitigate the factors that foster such decrease in values.

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