Tuesday, July 27, 2010

Shiller: I Expect Double-Dip Recession

Robert Shiller, Yale econ prof and co-developer of Standard and Poor's S&P/Case-Shiller home price indexes, told Reuters Insider he does not know where home prices may be headed, but believes the economy may be on a precarious path.

"For me a double-dip is another recession before we've healed from this recession ... The probability of that kind of double-dip is more than 50 percent," Shiller said. "I actually expect it." 

I do not consider Shiller a strong economic forecaster nor strong on economic theory. However, because of the home price indexes he puts together, he sees whats in front of him. And given his double-dip talk, what he sees in front of him can't be very good.

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