Here’s another new round of fairly calamitous forecasts from three of the most accurate economic prognosticators of our recent times.
Keep in mind that the respective outlook of all three forecasters has not changed measurably in the last year or so and, in fact, it seems quite obvious now that they were among the very few who clearly envisaged the full breadth and depth of the housing decline and the spillover effects that it’s reversal would have on the economy as a whole.
Peter “Dr. Doom” Schiff, President of Euro Pacific Capital joins CNN and CNBC to discuss the mortgage-housing crisis and its effects on the wider economy. Schiff points out that many of the subprime and toxic exotic loan borrowers were not victims but, in fact, speculators.
As lending standards tighten, returning to normal, home prices will correct and home equity will “vanish” leading Schiff to predict that he is “100% certain that we are headed for a severe and prolonged recession” while also suggesting that it will take time for all the aspects of the collapse to fully unwind.
Watch Dr. Doom’s Recent CNN Appearance on BNN!
Watch Dr. Doom’s Recent CNBC Appearance on BNN!
Yale Professor and Chief Economist of MacroMarkets LLC Robert Shiller joins CNBC to discuss the psychology of homeowner sentiment and the outlook for housing.
Shiller continues to suggest that, although the course of the housing market is slow and hard to predict, he is still worried about the impact of the correction and the likeliness for it to worsen.
While homeowners and homebuyers are generally still optimistic about housing and consumption, Shiller suggests that falling home prices and increasing inventory may likely erode that confidence.
Watch Robert Shiller’s Recent CNBC Appearance on BNN!
Watch Robert Shiller’s Recent Larry Kudlow Appearance on BNN!
New York University Professor and Chairman of RGE Monitor, Nouriel Roubini joins Bloomberg to discuss the outlook for housing and the economy.
Roubini now puts the odds of a recession at over 50% with the mortgage-credit crunch and a declining housing market leading to a weakening consumer.
While predicting an inevitable rate cut from the Fed, Roubini suggests that it will likely be too late to really affect the housing decline.
Watch Nouriel Roubini’s Recent Bloomberg Appearance on BNN!