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Nobel-winning economist warns of new housing bubble

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Mortgage Professional America | 16 Oct 2013, 03:30 AM Agree 0
A Nobel Prize-winning economist says the Federal Reserve’s ongoing economic stimulus is combining with increasing market speculation to produce a new housing bubble
  • Drue J | | 16 Oct 2013, 09:13 AM Agree 0
    In '05, there was plenty of inventory and prices were going crazy. Currently, there's a shortage of inventory and prices are moving. Aside from the low interest environment, this seems to be a basic case of supply and demand. So, I don't know if it can accurately be characterized as a bubble.
  • Thomas Hunt | | 16 Oct 2013, 09:17 AM Agree 0
    We don't need a nobel prize winning economist to tell us there maybe a bubble. First off everyone has a 50/50 chance of being right. A local realtor/mortgage broker would be a lot more accurate with the pulse of the market.
  • Elise | | 16 Oct 2013, 09:27 AM Agree 0
    Maybe we should all be alittle more respective this time around of his opinions. No one wanted to heed his alarms in 2005 and look at the mess we are in. Yes, real estate is localized as are market conditions but there does seem to be quite a bit of speculating still going on. We are all in a position to be able to counsel our clients with good solid advice about the perils the market can have.
  • Lonn Dugan | | 16 Oct 2013, 10:21 AM Agree 0
    RULE # 1

    Nobody gets the market right all the time.

    RULE # 2

    Warren Buffet says anybody who thinks they can predict the market is an idiot.

    This latest comment by Shiller will just prove both rules.

    Maybe I could win a Nobel Prize for observing that, "Cyclical markets move in patterns which tend to produce recoveries as gentle or sharp as the crashes that preceded.

    Or, how is this? "After every market contraction, or bear market, in any sector, the bull tends to come on strong - causing most investors to miss the first 10% of the rally."

    In other words, C'mon Man!

    Signed, Lonn Dugan
    Weekend Economist,

  • Chris Swanson | | 16 Oct 2013, 02:04 PM Agree 0
    I could make opposing comments on any topic and be right with one of them. It would be nice if they said how often Shiller was wrong on his predictions, just to put things in perspective. They give the Peace Prize to anybody nowadays.
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