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

Source: Fox Business


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.