The Real Deal Miami

Obama initiatives could have prevented crisis, Shiller says

July 14, 2009 01:39PM

Economists Nouriel Roubini and Robert Shiller have different views on the causes of the housing bust. On Bloomberg Radio’s “Surveillance,” Roubini, a professor at New York University’s Stern School of Business, and Shiller, economics professor at Yale University and co-creator of the Case-Shiller housing price index, discussed the housing market and the fallout from the subprime crisis. Roubini compared the current housing bubble and subsequent bust to that of the 1980s. “When you have repeated bubbles, and they burst, you get a recession,” Roubini said. Shiller cited markets that were “too efficient” and failure to regulate mortgages as the reasons for the bursting of the housing bubble. “Obama’s recent proposals, such as the Consumer Financial Protection Agency, could have prevented the whole subprime crisis,” Shiller said.