Robert Shiller Says Double Dip Imminent

In this week’s Big Interview, the Wall Street Journal‘s Simon Constable interviews Robert Shiller who flat out says that an economic double dip may be “imminent.” This compares to his earlier warning that he saw the chances of a double dip at over 50%.

Shiller also believes that when the NBER looks back at the data, Q3 of this year will mark the beginning of the second dip of the recession.

Furthermore, those looking to sell houses in the US are hereby advised not to listen to the interview, as the co-creator of the Case-Shiller Home Price Index also adds that he is worried housing prices could decline for another five years.

He notes that Japan saw land prices decline for 15 consecutive years up to 2006.Following up on this week’s weakest new home sales data in history this should probably not come as a big surprise to most.

And for bond fans; professor Shiller confirms David Rosenberg at Gluskin Sheff‘s view that bonds are not in a bubble:

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