ROBERT SHILLER, STERLING PROFESSOR OF ECONOMICS AT YALE UNIVERSITY, GIVES HIS VIEW OF THE HOUSING MARKET
ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
Year of a year prices rose over 12% according to your report, the most in most 7 years. But they are slowing down month over month and we saw that in the previous month report as well. The way you see it, is this a cause for concern?
ROBERT SHILLER, STERLING PROFESSOR OF ECONOMICS YALE UNIVERSITY (ENGLISH) SAYING:
Well I kind of think the market could go ether way and there are definite concerns when its starting to slow down we just got a weak consumer confidence report this morning, we have battles in congress looming that might hurt congress even more so there- and the other thing is that the boom that we have seen in home prices may be just a reaction to low interest rates and interest rates have gone up and maybe they will go up more so this could be the beginning of a weak market but then I'm not sure, I'm not sure.
ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
But what does this say about the overall health of the US economy?
ROBERT SHILLER, STERLING PROFESSOR OF ECONOMICS YALE UNIVERSITY (ENGLISH) SAYING:
Well I think housing is a sector of the US economy one that we have pinned our hopes on. The American public doesn't want more Keynesian stimulus so I guess that is what we are hoping for . But I'm not sure that it is going to come through for us because as you just noted its showing signs, some signs of maybe beginning weakness.
ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:
But the signs of weakness, they're slowing all bad, I mean there are some economists that are worried that investors, by speculators have pushed the prices too fast.
ROBERT SHILLER, STERLING PROFESSOR OF ECONOMICS YALE UNIVERSITY (ENGLISH) SAYING:
Yeah now the interesting development is that we are seeing a lot more people buying to rent out buying as investments to rent out. and in some places its gotten very heavy the volume of sales to these investors so what does that mean? Does that mean we are in a bubble? One way of interpreting i...
