The latest soundbite that should certainly add a few extra points to the S&P now that trading has reverted back to the bizarro zone is the most recent warning from Robert “Case-Shiller” Shiller who said that another 10-25% drop in real home prices would not surprise him at all… or anyone else for that matter except for all those who saw the “official” housing bottom back in 2009.
Recent housing and employment data suggests the economy is at a tipping point, while home prices could have much further to fall, veteran economist Robert Shiller said on Thursday.
“My gut feeling is we might see a continuation of the decline (in home prices),” Shiller said.
He added that a 10 to 25 percent slump in real home prices “wouldn’t surprise me at all,” though he cautioned that was not a forecast.
Speaking at the Standard & Poor’s housing summit, Shiller said recent data showing U.S. home prices fell into a double dip in March could prove to be either a seasonal effect over the winter months or part of a downward trend.
Another uptick in the unemployment rate might also start to point to a double-dip recession, he said.
Shiller is the co-founder of the S&P/Case-Shiller home price index and is known for warning about bubbles in the stock market and housing market.
Can the Fed already announce it will buy up every single home in the US at cost already, and get it over with. This aggression against kicking the can down the road will not stand.