If you haven't read "The Age of Turbulence," yet, I suggest you run out to the nearest bookstore and pick-up a copy. It's a great read.
The highlighted article, written by Alan Greenspan, offers a quick look at the current housing market and at the use of statistical models to anticipate market trends.
We will never have a perfect model of risk
In the current crisis, as in past crises, we can learn much, and policy in the future will be informed by these lessons. But we cannot hope to anticipate the specifics of future crises with any degree of confidence. Thus it is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: market flexibility and open competition.