When Yale economics professor Robert Shiller uses the word “bubble,” people listen.
The Arthur M. Okun Professor of Economics said Wednesday that the United States bond market could be in a bubble, according to a report by Bloomberg News. At a conference in Oslo, Shiller said long-term interests are currently at a “record low.”
Shiller’s 2000 book “Irrational Exuberance” foresaw the end of the dot-com bubble, and he saw the housing bubble coming, as well. In a March 2011 interview with the News, Shiller discussed the recent housing crisis, stating that he did not think a bubble in real-estate will emerge again soon.
“My feeling right now is that the housing market is so damaged, our psychology is not ready to go gangbusters on another bubble, not for years,” Shiller said.
Named one of the 50 most influential individuals in global finance by Bloomberg News, Shiller has worked at Yale since 1982.