Nobel laureate economist Robert Shiller puts the odds of a US recession at 50% due in part to a self-fulfilling prophecy as everyone worries about a downturn
- Nobel laureate and economist Robert Shiller said the US has a good chance of entering a
- He told Bloomberg Wednesday that the odds of a recession in the next few years are 50%, which is "much higher than normal."
Nobel laureate economist and Yale professor Robert Shiller said there's a good chance the US
"The fear could lead to the actuality," he told Bloomberg Wednesday.
In his view, the chances of a recession within the next two years are 50%, which is "much higher than normal."
Best known for predicting in 2005 that the housing bubble would burst, he later authored the 2019 book, "Narrative Economics: How Stories Go Viral and Drive Major Economic Events" and sees new signs of another housing bubble.
This time, the Fed's continued rate hikes could potentially lead to a rush of home purchases before borrowing costs get even pricier, Shiller warned.
"The idea that we're in a housing bubble is not so much talked about yet, but it's starting to come back," he said.
In addition, Shiller noted that the US is undergoing "post-traumatic stress disorder" from the pandemic, and that could also drive Americans to fulfill their own recession prophecy.
Ultimately, the economist explained, rising
"Inflation affects everyone," he said. "Every time they go to the store they see inflation and it makes them angry."
- Elon Musk calls on all Twitter designers, engineers doing software to sit on his floor of HQ for 'dense and intense' work
- It’s not just Mercedes, even bank deposits are competing with equities
- A former Facebook exec says an employee at a 'large tech company' once complained to the CEO in an all-hands meeting about the quality of company toilet paper
- India will succeed in handling inflation better: Sitharaman
- India's GDP growth comes in at 6.3% in Q2: manufacturing, mining witness negative growth
- Dharmaj Crop Guard IPO subscribed by a whole 35.49 times on last day
- Sensex, Nifty50 rewrite all-time highs yet again – RIL, HDFC twins most active, ICICI Bank touches new 52-week high
- Bollywood films failing is a phase, our films will bounce back strongly: Kajol