Case-Shiller Report Says Housing in Double Dip
Economist Robert Shiller says the housing market is in a double dip recession - a perception reinforced by his Case Shiller report.
Housing guru Robert Shiller says the decline in October's Case-Shiller house-price index was much worse than expected (over 10% annualized).
He also says that if house prices keep falling this fast, the economy will face "serious reasons to worry" (which, for Professor Shiller, is an apocalyptic statement).
6 of the 20 cities in the index have now hit new lows, below the lows reached in 2009 before the "recovery" in house prices. In several cities, prices are back to where they were 10 years ago.
Peter Schiff says prices will go down substantially further.
Schiff forecasts a glut of property on the market, higher unemployment, and Americans going poorer because of government actions. He says the Fed’s attempt to stop falling real estate prices with inflation will not work, as wages are not going to rise. However, the Fed will make other prices rise, like additional costs of home ownership, Schiff says.