Thursday, September 16, 2010

Shiller on Yet Another Stimulus

Robert Shiller is a smart guy who has been correctly calling the economy, the stock market, and the housing crash. Here he is on CNBC trying to push for more stimulus spending. Sadly, those in power aren't listening...

His book Irrational Exuberance was publlshed in early 2000 just before the bubble broke and the stock market tanked.

In 2008 he published on the 2007 breakdown in subprime mortgages with the book The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It. It was this crisis that led to the bank panic of 2008 and the economic collapse of late 2008/early 2009.

The guy is sensible and has good ideas. But nobody is listening. I put him and Krugman as two "voices in the wilderness", i.e. people who have been on the right side of all the economic problems but mysteriously they are ignored while the political parties listen to advisors who got it wrong in the past, are getting it wrong right now, and will get it wrong in the future. Sad.

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