Timmy Elsewhere

In the Telegraph.

Reviewing (erm, yes, here) Robert Schiller\’s new book on what to do about the sub-prime mess.

6 thoughts on “Timmy Elsewhere”

  1. “Schiller, an economics professor at Yale, makes the point that houses shouldn’t rise in price at all.”

    Tee hee, the gimmick is, in the long run, house prices-to-income ratios don’t rise at all. everything in between is just bubbles/busts.

  2. I’m mot sure about Schiller’s idea, at least as you state it. For homeowners it doesn’t really work because they couldn’t afford the margin payments if they went short and prices kept rising. And in general the ones we have at the moment such as the HPI futures don’t seem to have performed much of a useful signalling function, when they were launched in Jan 07 they forecast a rise of prices of about 2-3% in 2008.

Leave a Reply

Your email address will not be published. Required fields are marked *