Shiller: Housing Bubble Could Be Forming in Some Areas

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"

  1. Rich Manson   August 3, 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.