Jan 28 2010

Newshour talks to Case & Shiller about housing market

Posted by in Finance Online

PBS Newshour interviewed Carl Case & Bob Shiller (inventers of the famous Standard & Poor’s Case-Shiller index) in the story: Home Price Experts Give Take on Markets in Atlanta, Beyond

ROBERT SHILLER, Yale University: We have had the biggest bubble in American history, as regards to the whole market. It was everywhere, and it was huge, and it peaked in — it went up for almost nine years up to 2006, and it’s been going down now for over three years.

PAUL SOLMAN: And that suggests that it’s going to go down more, it’s going to come back? I mean, looking, again, long-term, what’s your best guess?

KARL CASE, Wellesley College: Well, there’s reasons to believe it’s going to stay down, and there are reasons to believe it’s going to come back, but…

PAUL SOLMAN: You know that’s why — that’s why you economists drive people crazy? You understand that?

KARL CASE: Absolutely. But here’s the thing. Prices are down 30 percent.

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