Shiller Skeptical About Housing Recovery

Robert Shiller was on CNBC today discussing the state of the housing market.  Shiller says he is skeptical about the housing recovery and says many headwinds still remain.  He says it’s still a risky market.  Here’s more via CNBC:

Shiller — who has a closely watched housing market gauge bearing his name — is famous for his dire predictions about the health of the U.S. home sector prior to the 2008 crisis.

Highlighting differences that exist between states that are recovering and others still suffering from high foreclosure rates, Shiller told “Futures Now” that the housing market’s recovery was likely to remain plodding but incremental — with more mortgage defaults likely.

Persistently high unemployment and low growth in wages “are reasons to be skeptical about this recovery,” Shiller said. “People that haven’t resolved their economic situation yet and we have threats from abroad. I still think it’s a risky market.”

See the full interview here.

 

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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Comments

  1. Who wouldn’t be skeptical? Yves Smith author of Econned and Blogger of the Naked Capitalism: http://www.nakedcapitalism.com/ has wrote extensible on the big bank fraud cover ups at least and out right political Jerry meandering at best to bull crap placard over inept govt regulations and regulators that brought about the who housing debacle as well as the paint over cover up..

    Based on what I have read at her sire over the last few years, she seems like a decent person with good intentions of finding out the truth.

  2. I find it hard to believe that a bubble that was equal to the magnitude of the housing bubble we experienced is just going to end in six short years and then be followed by a V shaped recovery. I would expect this to be a long drawn out affair with a few false starts.

  3. KEY POINT:

    “Persistently high unemployment and low growth in wages “are reasons to be skeptical about this recovery,” Shiller said. “People that haven’t resolved their economic situation yet and we have threats from abroad.”

    We should extend this comment to any other economical sector. Have you ever seen economic expansion with shrinking or at best static incomes and persistent if not growing inequality to be summed to growing international tensions ?

  4. Raise the corporate tax rate. The stock market will collapse, but the housing market will begin to truly recover as wages rise and the debt eases.