In the spirit of Mark Twain’s “history doesn’t repeat, it rhymes”, here’s Nobel laureate and bubble spotter extraordinaire Robert Shiller talking about the latest asset bubble(s):
On when the Fed should start raising interest rates:
If I was asked to testify before them I might reconsider, but there is a tendency for central banks to ignore speculative bubbles until it’s too late. It may already be too late. Stock markets are quite high and prices in the real estate market are getting high.
And, on the economy, Shiller speaks the unspeakable:
A lot of people feel, down deep, “I know we’re not getting out of this”.