For months now, Robert Shiller, Yale University Economics Professor and co-creator of the Case-Shiller Home Price Index, has been calling for a double-dip for home prices. Now he’s doubled up on that forecast, citing 50-50 or better odds of a double-dip recession for the U.S. economy as detailed in this report at Marketwatch.
The U.S. economy has a “significant likelihood” of entering a double-dip recession if the government doesn’t step in to help the unemployed, economist Robert Shiller told MarketWatch News Break on Wednesday.
The Yale University professor and author of the best-selling book “Irrational Exuberance” pinned the probability of a double-dip recession at more than a 50-50.
Shiller pointed to the nation’s stubbornly-high unemployment as a root cause of lingering economic woes. And with the Federal Reserve running out of bullets to fight a second recession, he urged Congress to join the battle and focus on putting people back to work.
“Beyond the Fed, I’d like to see the government take a renewed stimulus package focused on creating jobs [and] on activities that involve a lot of people,” Shiller said.
…
“The Fed’s latest statement shows they’re on this, but I’m not so sure Congress is on this,” said Shiller. “There is significant likelihood of [a second recession] if the government doesn’t do something. I’m worried [unemployment] is not going to self-correct.”
It will certainly be an interesting period ahead in the run-up to the November elections, now less than three months away. Recall that the entire nation appeared to be in limbo in late-2008 while markets tanked and economic indicators took a decided turn for the worse before and after the huddled masses went to the polls.
![[Most Recent USD from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
The problem is that, like the last $850 Billion “handout to Party supports” gigantic waste, any future stimulus is likely to be as [purposefully] misguided as the previous one; and statements like Shiller’s, while true in concept (ie: unless the government does something, the economy is likely to get worse), just serve to empower the politician to steal more of our money and hand it to their supporters and political allies, without any positive impact or even intention. It would probably be more accurate to state that the economy is probably going to get worse, and anything the government does using the economy as an excuse is even more likely to make the situation worse.
It’s very frustrating when the government is both the largest problem, and the only potential solution, to enormous socioeconomic problems. Everyone wants to say the government should do something, but nobody has the courage to admit that anything the government actually might do would be far more damaging than it doing nothing at all. We (the people) desperately need to stop giving blank checks to lunatic madmen when times get rough, refuse to stand for them writing themselves blank checks drawn on our hard work and future prosperity, and purge the whole corrupted mess, so we can try to get actually healthier.
Double-dip? Yet another media spin and fools believe it.
It’s the same dip! You know, the one start appeared in 2008, got spin around so fast with stimulus force that fools thought it disappeared. But the dip is still there, bigger than ever.
I have news: the spinning of the dip will slow in Q3, and grind to a halt in Q4. A funny thing can happen to a dip when it is no longer spinning. It falls and crash.