Top economist says America could plunge into recession

Posted by Kendall Harmon

Losses arising from America’s housing recession could triple over the next few years and they represent the greatest threat to growth in the United States, one of the world’s leading economists has told The Times.

Robert Shiller, Professor of Economics at Yale University, predicted that there was a very real possibility that the US would be plunged into a Japan-style slump, with house prices declining for years.

Professor Shiller, co-founder of the respected S&P Case/Shiller house-price index, said: “American real estate values have already lost around $1 trillion [£503 billion]. That could easily increase threefold over the next few years. This is a much bigger issue than sub-prime. We are talking trillions of dollars’ worth of losses.”

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Filed under: * Economics, PoliticsEconomyHousing/Real Estate Market

Posted December 31, 2007 at 7:41 am [Printer Friendly] [Print w/ comments]

1. Wilfred wrote:

Once housing prices stop declining & begin rising again, look for articles lamenting this also, because then fewer families will be able to afford them.  With the proper attitude, you can turn any trend into bad news.

December 31, 3:54 pm | [comment link]
2. angusj wrote:

With the proper attitude, you can turn any trend into bad news.

In fairness to Prof Shiller, I think the impending recession in America is much more than just a “glass half empty” kind of problem.
AngusJ (from Sydney Australia)

December 31, 6:19 pm | [comment link]
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