Eli Broad, billionaire uber-investor and former CEO of real estate and finance giants KBHome and SunAmerica (now a subsidiary of AIG), says that the current recession is the worst since the second world war. Broad also suggested that a housing recovery wouldn’t begin for “several years.” Bloomberg:
This is the worst period of my adult lifetime,” Broad said, speaking about the U.S. economy. “I do not think things are going to get any better” before the next president takes office in January… “The problem is, people don’t believe prices have bottomed out. You’ve got to induce people to buy houses… I think housing is going to continue to have a corrosive effect on consumer psychology and the economy in general to a far greater extent than people think, or even far greater than I thought about a month or two ago,” he said.
On a positive note, Broad doesn’t think the current downturn will approach Great Depression levels, given the number of “safety nets” maintained by the federal government.