Alan Greenspan is experiencing inflation:

Asked whether the crisis, which has seen the US government step in to bail out mortgage giants Freddie Mac and Fannie Mae, was the worst of his career, Greenspan replied “Oh, by far.”

[…]

“And indeed, it will continue to be a corrosive force until the price of homes in the United States stabilizes.”

But as Donald Luskin points out in today’s Washington Post:

According to the latest report from the National Association of Realtors, the median price of an existing home is up 8.5 percent from the low of last February. And according to the U.S. Census Bureau, the median price of a new home is up 1.3 percent from the low of last December.

The housing crisis has now become one of those inverse-reality talking points, like fretting over defeat in Iraq as we win, and crying over global warming as the planet cools. Or like Alan Greenspan declaring a crisis the “worst of his career” when he’s no longer Chairman of the Federal Reserve.