Professor Schiller of Yale University Warns of Bubble Risks in Housing, Stock, and Cryptocurrency Markets

Professor Robert Shiller of Yale University [Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Robert Shiller, a Yale University professor who devised the Case-Shiller Home Price Index, a representative U.S. housing price index, has warned of bubble risks in the housing, stock, and cryptocurrency markets.

According to CNBC on the 23rd (local time), Professor Shiller recently compared the investment fever in some markets to the "Wild West" era of American frontier expansion, pointing out that it is excessive. Professor Shiller received the Nobel Prize in Economics in 2013.

In particular, Professor Shiller expressed concern about the housing market bubble. He appeared on CNBC and said he had never seen such frenzied investment before. He noted that even looking at data from the past 100 years, housing prices have never been as high as they are now, and that this cannot be explained by central bank monetary policy alone. Professor Shiller said there are too many driving forces behind the rise in housing prices and that prices are unlikely to fall even if one waits for a year.

Professor Shiller said the current situation is similar to 2003, pointing out that U.S. housing prices began to decline from 2005, two years later, eventually leading to the global financial crisis in 2008.

He also believes that crowd psychology played a major role in the dramatic rebound of stock prices after the COVID-19 pandemic bottomed out, warning that inflation fears could ultimately lead to a decline in long-term assets.

Regarding the cryptocurrency market, he said it is a highly psychological market, with the ultimate source of value being very ambiguous and influenced more by words than reality.

This content was produced with the assistance of AI translation services.