Interesting enough, Robert Shiller is considered by many to be one voice of reality amongst many dreamers and kool-aid drinkers. What I find very compelling, however, is his need in this video to repeatedly mention the fact that we are NOT headed for a depression, that a depression is what the U.S. WILL, according to him, avoid. However, he points out the similarities in consumer confidence figures and housing price declines while mentioning that this time around the latter is much larger, both in asset value run-up to the bust, and potential decline.
Another commment of note is that he states that the $150 Billion stimulus package, which has yet to see the actual light of day, is approximately a 1% boost to GDP. Of course, what he doesn't mention is that that would be if those that receive the cash actually spend every penny of it buying something.
Again, here we have another world-renowned expert touting Wreck-onomics.
While in general we agree with Mr. Shiller's views on the housing crash and the impending further deflation of the asset bubble, it is clear to us that he is either denying the inevitable, or sugar-coating his fear. Most likely a little of both.
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