Bob Shiller's Healthy Dose Of Skepticism

Tyler Durden's picture

In a week dominated by prognosticators pointing reflexively to a nominal price index flashing green on their TV as indication that all is well in the world, Bob Shiller provides some much-needed healthy skepticism on not just the state of the housing market but the broad economy itself. While Bloomberg TV's Tom Keene presses his short-term anchoring-biased view of a world heading for much better growth and a US housing recovery that will seemingly save us all; Shiller warns we have seen this before (in 2009's housing market) and that the housing decline could go on. When Keene tries to translate the market's performance into economic performance expectations, Shiller responds "you are talking to wrong man." From the fact that we should be growing super-normally now to return to 'normal' market conditions to his view of many more years to go in this stagnation, four minutes of Shiller's historical prescience is the perfect foil to the tick-watching talking-heads exuberance (especially in light of today's dismal new home sales).

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surf0766's picture

When does Soros speak about gold being in a bubble from Daaaaaaaaaaaaaaaaaaaaaaaaaavos only to find out a quarter later he is buying?

francis_sawyer's picture soon as he gets finished with his dungeon sodomy session with the local choirboys...

Pinto Currency's picture


Shiller's home price index was cleverly constructed and hid much of the bubble price evidence as the bubble unfolded.

He played right along with the banking industry.

tango's picture

If Shiller's index was so cleverly constructed why were warnings flying left, right and center about the housing bubble?.  Every real estate agent I know swore it could not continue (even as they sold away) for much longer.  We Monday morning quarterback so much - reminds me of all the cries that no one knew about the dangers of sub-prime or people were innocent victims.  Again, at the time, there were news stories, paper stories, warnings from every financial advisor in the land to beware the pitfalls of 1% down and 3% loans.  

Earl of Chiswick's picture

While Bloomberg TV's Tom Keene presses his short-term anchoring-biased view

yes indeed but where else would one find a pipe puffing, bowtied pseudo economist

FrozenOut's picture

I'm sorry I don't know which book you read, but "Irrational Exhuberance" 2nd. Edn, Chapter 2 (I believe) --- the one on the housing bubble, clearly showed two things: 1, the long-term real rate of appreciation of housing was around 1% per annum (and this statistic was measured on data ending in the middle of the bubble); 2, current prices (at the time) were astonishingly above their long term average.

localsavage's picture

NAR to bob...WTF??? buy buy buy..comision comission comission..... what part don't you understand?

francis_sawyer's picture

Lloyd Blankfein will invite Shiller to "mow his lawn" before the big Hamptons gig this summer...

steve from virginia's picture



Schiller is too accomodating and Keene is just a stock whore. Worse than Cramer ...

yogibear's picture

Keene is just a whore. He seems to boot-lick everyone of power and status. He and that Jewish chick, Sara Eisen, make for a disgusting pair.

It's like Lee and Cramer on CNBS.

kito's picture

it might be noted that shiller is in the camp that all things will go down with the included......................

Yen Cross's picture

   #uck Soros and his " River Rhine" protoge<

Super Broccoli's picture

recovery in real estate ??? VIX going down ????

This guy sure lives on planet Davos !

NoDebt's picture

Dimon says "you guys haven't fixed anything in banking" at Davos

Shiller says the home market could be on it's back for years at Davos

And Gross says "bonds are in a bubble" a few weeks before Davos

So let's see here.....  What's left?  I know!  Stocks!! 

(And, of course, Gold, that barbarous relic)


Bunga Bunga's picture

Only one can win. Bet on the winner!

syntaxterror's picture

Hopefully they all had nice visits with their secret bankers while they were in town.

yogibear's picture


Then the producer makes Shiller look like a Bloomberg monkey with that black jacket with "Bloomberg" on it.

Why not give Shiller a Bloomberg hat and a bloomberg cup?  


miker's picture

Shiller is actually one of the few that won't fully drink the coo-aid.  He's not a government shill but he also knows where his bread is buttered.  So I give him credit for not totally holding the party line.  Keene/CNBC; give me a break.  Why does anyone watch that crap?

gould&#039;s fisker's picture

I didn't realize we still had a housing "market". Bloomturd fucking idiot--"help me out here"--fuck you, the economy fucking sucks, douchebag asshole. "A great year and a good housing market"--how far is that bow tie and the pimple on top of it up his own ass.

syntaxterror's picture

Amazing how supply magically vanished. And how Loki Boy pimps out B-of-A properties.

Bunga Bunga's picture

Better they take all off the lists .... too many Loki Boys out there.

Room 101's picture

There's something wrong with this thread.


Fuck you Bernanke.

OK.  It's fixed now. 

yogibear's picture

It's always good for bonus points.

booboo's picture

1. What happens to house prices when interest rates go up?

2. Which way, up or down will interest rate go in the next 10 years?

3. Are incomes rising as fast as "things you have to have to live"?

Now tell me where housing is going.

Even if they could pull this Jumbo jet out of a flat spin,  see #1-3

Matt's picture

#1: depends on if there is runaway or hyperinflation, housing could go up with interest rates.

#2: They could go sideways for the next 20 years, who knows.

#3: incomes are not keeping up with cost-of-living inflation (as opposed to CPI inflation). However, we're always just one mega-disaster away from mass relocations and new major reconstruction efforts.

New_Meat's picture

Boomberg's Keene (as is the show's policy) never calls bullshit on any guest's assertion.  To his credit, he does bring (well, sometimes) an individual with a counter viewpoint.  Mostly seems to be the booker's ability to gain a possible skosh' contrary viewpoint. 

Earl of Chiswick's picture

corrected your mispelling

Mostly seems to be the hooker's ability to gain a possible skosh' contrary viewpoint.

Cosimo de Medici's picture

What the "market is saying" is that money is free, rates are zero, and losses are backstopped.  That it is saying 'economic recovery' is the Bad Lip Reading version...

Dineroguru's picture

This entire Davos deal is grade A bullshit.  Why do I want to listen to the same bozos that so badly fucked up the system tell me why things are getting better.  These vapid academics talk to much they convince themselves they actually know what is going on when they couldn't be further from the truth!  Let's go interview folks up and down the Main Streets in Europe and the USA  for their opinion of how Western style finance is working and leave these clowns to burry themselves!

tango's picture

Yet these are the ones who control the direction of things.  The real bozos are the folks on the Street who couldn't define a derivative, tell you what continent a Euro was used in or come within 90% of the national debt.  Face it, most folks on the street are ignorant of economic issues.  They are NOT like you and me and the others who post here.

Steverino's picture

Keene is a fucktard of the highest order...

neutrinoman's picture

Davos: where the elite meet to eat reheated meaty treats -- at $12 a pop.

It's all so backward looking -- how can it not be?

Earl of Chiswick's picture

I would have to say that of all the finance anchors Keene is likely the whoremaster of them all - something changed cause when he was radio only his interviews were quite balanced - we guess it's that tightly wound knot of pussy hair stuck in his throat ever since he split from the misses and hooked up with ...

Sudden Debt's picture

Anybody ever look up the definition of a "bank"? :)

bank 1 (bngk)
1. A piled-up mass, as of snow or clouds. See Synonyms at heap.
2. A steep natural incline.
3. An artificial embankment.
4. The slope of land adjoining a body of water, especially adjoining a river, lake, or channel. Often used in the plural.
5. A large elevated area of a sea floor. Often used in the plural.
6. Games The cushion of a billiard or pool table.
7. The lateral inward tilting, as of a motor vehicle or an aircraft, in turning or negotiating a curve.
v. banked, bank·ing, banks
1. To border or protect with a ridge or embankment.
2. To pile up; amass: banked earth along the wall.
3. To cover (a fire), as with ashes or fresh fuel, to ensure continued low burning.
4. To construct with a slope rising to the outside edge: The turns on the racetrack were steeply banked.
a. To tilt (an aircraft) laterally and inwardly in flight.
b. To tilt (a motor vehicle) laterally and inwardly when negotiating a curve.
6. Games To strike (a billiard ball) so that it rebounds from the cushion of the table.
7. Sports To play (a ball or puck) in such a way as to make it glance off a surface, such as a backboard or wall.
1. To rise in or take the form of a bank.
2. To tilt an aircraft or a motor vehicle laterally when turning.
[Middle English, of Scandinavian origin.]