Famous economist, and author, Robert Shiller appeared on Fox Business Network several days ago. Shiller discussed consumer confidence, and housing prices. Shiller thinks that it is difficult to predict housing prices after the tax buyer credit ended at the end of April. Shiller's personal opinion is that there is a good chance that home prices will continue to decrease.
Shiller also believes consumer confidence plays a huge role in the economy. Confidence can drive housing prices, retail spending, and stock prices. When it comes to the housing market, the Government plays a huge role in keeping up home prices through the FHA, mortgage deduction on taxes, and through the GSEs. People are afraid that the Government will pull out this support, and this is changing how people look at homes as investments.
Shiller discusses the new financial reform bill. He believes that it is very vague, and leaves many businesses uncertain as to what effect it will have on them.
Shiller also believes consumer confidence plays a huge role in the economy. Confidence can drive housing prices, retail spending, and stock prices. When it comes to the housing market, the Government plays a huge role in keeping up home prices through the FHA, mortgage deduction on taxes, and through the GSEs. People are afraid that the Government will pull out this support, and this is changing how people look at homes as investments.
Shiller discusses the new financial reform bill. He believes that it is very vague, and leaves many businesses uncertain as to what effect it will have on them.
