(Chart from NYT article: Be Warned: Mr. Bubble’s Worried Again)
Robert J. Shiller, the Yale economist who published “Irrational Exuberance” in the year 2000, is at it again. And with a vengeance.
Shiller argues that, “the housing craze is another bubble destined to end badly, just as every other real-estate boom on record has.” And he predicts that, “prices could fall 40 percent in inflation-adjusted terms over the next generation and that the end of the bubble will probably cause a recession at some point.” As usual, we’re memorized by his data (and chart).
· Be Warned: Mr. Bubble’s Worried Again [NYT]