Friday, November 28, 2008

Robert Shiller on the Housing Crisis

Hello All!:

This is long but worth listening to. Investing going forward may never be the same.

Professor Robert Shiller who helped create the Case/Shiller index predicts the housing collapse could last years and years:



Part 2



Part 3

3 comments:

Uncle Joe said...

He started to lose me with his praise of Keynesian stimulus and the New Deal.

Jeff said...

uncle joe

I hear ya.

Sadly things are so bad that no one has any answers as to how to get out of this.

I this forces us to go back in history to look for answers. Unfortunately the only comparable situation to our financial crisis is the Great Depression.

I think Obama's 2.5 million new jobs idea is derived from the new deal.

The economic leaders of this country our desperate for answers. I am not a big fan of how The Great Depression was handled either. Ultimately it was WOrld War 2 that got us out of this mess.

I think some of his ideas like offering equity insurance when you buy a house to protect you from depreciation are really good.

Jeff said...

Hello All

Back from the break.

I need to turn on the lights in here and warm this place up.

I will have something up tomorrow. I hope everyone had a great Thanksgiving.

There was no earth shattering news over the break. The Nikkei is behaving pretty well. Its down about 100 points.

I am not surprised that we moved north all last week.
This rally looks exactly like the Bear Stearns ramp job.

We all know how that eneded in May/June.

The collapse is immenent folks, but there may be one more bull run based on "hope" that the bailouts will save us.

The holiday shopping season will be a major bust and once the data is in the market will head south once again.

I strongly suggest that you sell some of your long positions into this rally.

You might not get another chance moving forward.