Fannie CEO: housing trouble until 2009

One more prominate real estate industry figure states for the record that the US housing crisis will last until 2009, "at the earliest." Just yesterday former Fed chairman, Alan Greenspan, said that the odds the U.S. falling into a recession are "clearly rising" The drum beats louder. Can you hear it?

Harry

Fannie CEO: housing trouble until 2009

By MARCY GORDON, AP Business Writer 2 hours, 24 minutes ago

WASHINGTON - Fannie Mae's CEO (Mudd) told shareholders Friday he does not expect a housing market recovery until late 2009, "at the earliest," and that the mortgage-finance company is strong enough to ride out the downturn...

Mudd said Fannie Mae was "in a stronger position" because of the extensive changes to its management and operations over the past three years made in the wake of its $6.3 billion accounting scandal and with the recent steps taken to curb losses and buttress its finances.

He called them "extraordinary steps, but steps we believe are prudent."

The Fannie chief reaffirmed his gloomy forecast for the housing market, saying "This is the worst housing and mortgage market in recent memory, and we are still working our way to the bottom, in our view."

Source here.