The former chairman of the Federal Reserve, Alan Greenspan, said falling home prices in America are “nowhere near the bottom” and the resulting market turmoil isn’t showing signs of abating.

While the odds of a recession are 50-50, achieving stable markets will “take a while,” Mr. Greenspan said yesterday in a CNBC interview.

Fannie Mae and Freddie Mac, the largest sources of money for American home loans, are a “major accident waiting to happen,” Mr. Greenspan said. “The solution” is the “nationalization” of the companies, he said, a restructuring involving an infusion of taxpayer money and eventual sale back to the market as “five or 10 separate entities,” he said.

Washington-based Fannie Mae dropped 71 cents, or 5.8%, to $11.50 in New York Stock Exchange composite trading. Freddie Mac, based in McLean, Vir., fell 56 cents, or 6.4%, to $8.17.

“It’s important that we focus on stabilizing the financial system,” Mr. Greenspan said.

Policy makers also need to reconcile slowing economic growth with rising prices, he said. The American faces “a very substantial change in the balance between growth and inflation.”

The Fed had to open up lending to securities firms to curb turmoil in financial markets, he said. “You have to do the backstop because once you get to that point your particular choices are very limited.”

Still, Mr. Greenspan said he was “uncomfortable” with aspects of the Bear Stearns Cos. rescue. “That is a fiscal policy operation, essentially something which should be set up in the Treasury Department.”

Consumer prices increased 5 percent in the 12 months to June, the most since May 1991. The core rate, excluding food and energy, increased 2.4% from June 2007.