Unexpected Home Price Decline is a Serious Reason to Worry About Economy
Robert Shiller, co-creator of the index joins the Wall Street Journal and shares his perspective. The Standard & Poors/Case-Shiller index's most recent report shows that home prices across America are declining . For economists, this is yet another unexpected sign that the economy is slowing. but this was to be expected.It's very simple... Option ARMs and Alt+A mortgages are resetting and causing more people to go into foreclosure, shadow inventory continues to pile up, long term interest rates have spiked recently, unemployment numbers continue to rise, bearishness on the overall economy continues to rise, and foreclosure-gate has decimated faith in the system. In this environment, why in the world would anyone expect anything but falling prices?
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