Grim Grim Grim
And a government that thinks it can push on this string is just plain wrong.
Housing is just one option, and now we have house ownership, with attendant mortgages holding back work force flexibility ... workers can move to find new jobs.
"In shocking contrast, Shiller said it wouldn't surprise him if home prices slowly decline for years: '... This is not what people expect, and it's not what professional forecasters expect, and I'm not saying it's going to happen. I'm saying it wouldn't surprise me.'
Shiller bases the possibility on a parallel between what has happened in the U.S. housing market and what happened in Japan. After a sharp increase from the late 1990s through the peak in 2006, home prices in the U.S. have declined for three years until the recent sharp government intervention. In Japan urban land prices (home prices) peaked around 1991, and then fell for 15 consecutive years in major cities of Japan. 'That's the way these markets typically, historically have worked, and it reflects changing public attitude,' said Shiller. 'These are not professional markets that trade on exchanges and turn on a dime. The only reason they turned on a dime this time is because of a massive government intervention.'"
Shiller bases the possibility on a parallel between what has happened in the U.S. housing market and what happened in Japan. After a sharp increase from the late 1990s through the peak in 2006, home prices in the U.S. have declined for three years until the recent sharp government intervention. In Japan urban land prices (home prices) peaked around 1991, and then fell for 15 consecutive years in major cities of Japan. 'That's the way these markets typically, historically have worked, and it reflects changing public attitude,' said Shiller. 'These are not professional markets that trade on exchanges and turn on a dime. The only reason they turned on a dime this time is because of a massive government intervention.'"
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