Robert Shiller sees telltale signs of new bubbles forming in some of the former bubble markets. He mentions Phoenix and San Francisco as two notables. I see this as a side effect of the record low rates that the Fed is creating in the mortgage market. How did Janet Yellen put it: “It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage“. Yep, that’s it exactly. Video below:
This post originally appeared at Credit Writedowns and is posted with permission.
One Response to “Shiller: Housing Bubble Could Be Forming in Some Areas”
Rich Manson • August 3rd, 2012 at 1:55 pm
I'm surprised Dr.Shiller didn't mention one bubble almost in his New Haven backyard:Greenwich,Ct.;much of neighboring Westchester County;in fact,all of the NYC suburbs.Worst of all is Manhattan itself,as well as many areas of Brooklyn.The once strong Euro was artificially inflating prices there as well.















