Robert Shiller Warns Sweden's Home Prices Are Too High In A Sidewalk Chalk Drawing

Economist Robert Shiller was in Sweden this past weekend to attend the festivities surrounding the awarding of his 2013 economics Nobel Prize.

While there, he interviewed with Sweden's Sveriges Television's svt1, and warned that Swedish home prices have disconnected from fair value.

"I think there's been a change in public thinking that is driving a temporary increase in home prices," he said. "The change in thinking is of housing as an investment. And there's a perception that home prices have gone way up in lots of other countries so why not in Sweden as well."

Last month, economist Nouriel Roubini warned that Sweden was among several countries showing "signs of frothiness, if not outright bubble."

The svt1 reporter, who was carrying a piece of chalk, drew what appeared to be a chart of Swedish home prices on the sidewalk where the two were walking.

"They think there's more value here than there really is," said Shiller gesturing to the drawing.