US property prices to fall 30% to 50% says Nobel economist Joseph Stiglitz

Joseph Stiglitz, a Nobel prize winning economist, says he is still “very pessimistic” about the US subprime mortgage crisis, a doubts the financial turbulence it has created will end soon.

In response to recent suggestions that the credit crunch will soon be over Stiglitz says “Many bankers are talking up positive scenarios to head off more regulations. Central bankers are trying to appear serene to boost confidence, but the best estimates indicate that property prices in the US still have 30% to 50% to fall.”

If he is right, and property prices fall that much in the US, Spain won’t be far behind.