Case-Shiller Index co-author Robert Shiller spoke with FOX Business Network (FBN)’s David Asman and Liz Claman about the state of the housing market. Shiller discussed whether a housing recovery is the key to an overall economic recovery and said, “Housing has been an important part in recoveries historically and I would imagine that it would again…but we’re in the doldrums and we need something.” He also talked about where the next bubble could be, saying, “Just a gut feeling it could be the stock market. I’m more worried about the stock market than the gold market.”
Excerpts from the interview are below.
On if housing has to recover before the economy improves: “Housing has been an important part in recoveries historically and I would imagine that it would again. Of course, there are other sources of stimulus; it doesn’t necessarily have to be housing. President Obama has an American Jobs Act which would give other kinds of stimulus to the economy, but we’re in the doldrums and we need something.”
On if the housing industry has more to go on the downside before we bottom out:
“Yes I worry about that. Home prices had come back to a reasonable level based on a long history but after bubbles, speculative prices sometimes overshoot. Right now we’re in a period of low confidence, so it seems to me that they might well continue to fall.”
On what the next bubble could be:
“Just a gut feeling it could be the stock market. I’m more worried about the stock market than the gold market.”
On if the government is doing too much or too little with real estate:
“Too little. The HAMP programs didn’t work. We need to get on with something better.”
**FOX BUSINESS NETWORK**
Excerpts from the interview are below.
On if housing has to recover before the economy improves: “Housing has been an important part in recoveries historically and I would imagine that it would again. Of course, there are other sources of stimulus; it doesn’t necessarily have to be housing. President Obama has an American Jobs Act which would give other kinds of stimulus to the economy, but we’re in the doldrums and we need something.”
On if the housing industry has more to go on the downside before we bottom out:
“Yes I worry about that. Home prices had come back to a reasonable level based on a long history but after bubbles, speculative prices sometimes overshoot. Right now we’re in a period of low confidence, so it seems to me that they might well continue to fall.”
On what the next bubble could be:
“Just a gut feeling it could be the stock market. I’m more worried about the stock market than the gold market.”
On if the government is doing too much or too little with real estate:
“Too little. The HAMP programs didn’t work. We need to get on with something better.”
**FOX BUSINESS NETWORK**
