U.S. House Price Decline Could Be Worse than Great Depression, Economist Shiller Says

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Submitted by djrobsd on September 4, 2008 - 12:12pm

Eight years ago, Yale superstar professor and MacroMarkets chief economist Robert Shiller famously called the top of the stock market in his book Irrational Exuberance. Then, a year before the housing bubble peaked, he predicted the colossal bust we are now experiencing.

If you recognize Shiller's name, it’s because the Standard & Poor's/Case-Shiller home price indexes, which he developed with Wellesley College economist Karl Case, have become the nation's most authoritative source for home price trends.

In part one of my one-on-one with Shiller, we discuss the grim outlook for U.S. housing, which he tackles in-depth in his new book The Subprime Solution. Highlights of our first discussion include:

http://finance.yahoo.com/tech-ticker/art...

‹ LA Times - housing downturn mulitpier effect Economy `Slow' in Most of U.S., Fed's Beige Book Says ›
It's a comin'.
Submitted by peterb on September 4, 2008 - 4:31pm.

It's a comin'.

It looks like the U.S. house
Submitted by pencilneck on September 4, 2008 - 4:46pm.

It looks like the U.S. house price decline is already worse than the great depression:

http://www.boston.com/realestate/news/bl...

"The chart, at right, shows that prices could fall further in 2008 than during the worst year of the twentieth century, 1932, when prices fell 10.5 percent. Prices at the end of March this year were 14.1 percent below prices at the end of March last year."

Neat chart at the link.

pencilneck wrote:It looks
Submitted by jficquette on September 4, 2008 - 4:52pm.

pencilneck wrote:
It looks like the U.S. house price decline is already worse than the great depression:

http://www.boston.com/realestate/news/bl...

"The chart, at right, shows that prices could fall further in 2008 than during the worst year of the twentieth century, 1932, when prices fell 10.5 percent. Prices at the end of March this year were 14.1 percent below prices at the end of March last year."

Neat chart at the link.

Plus no one even talks about interest rates. Let rates get up to 12% like they were 20 years ago and prices will have to be cut in half again.

John

http://piggington.com/shiller
Submitted by svelte on September 4, 2008 - 4:53pm.

http://piggington.com/shiller_housing_sl...