Shiller: There Will Be More Bubbles
It’s amazing how much money and effort the government has thrown at the financial crisis over the last few years and yet it’s looking more and more like they’ve accomplished very little. The stimulus was a short-term fix, the housing stimulus has simply propped up prices, and the financial regulatory reform bill is unlikely to prevent future crises.
In the following segment Robert Shiller discusses how the government actions have failed us. He believes the economy remains very weak and that the government has not done enough to target the right areas of the economy. He is worried that house prices could decline further and that we’re entering a soft patch that could reveal underlying private sector weakness:
Source: CNBC
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