Nobel Prize Winner Warns of Stock Market Risk

With the Dow Jones stock index up 115% from March 2009 to an all-time high and the number of bearish investors at the lowest point in 25 years, it should not be surprising that this years' Nobel Prize winning economist, Robert Shiller, would warn over the weekend that greedy investors might be blowing themselves a dangerous bubble that might be about to burst and seriously hurt the economy. As the author of Irrational Exuberance, he predicted the top in the 1990s bull market in stocks, the 2005 top in residential real estate and warned in 2007 of a coming bank crisis less than a year before Lehman Brothers filed for bankruptcy. When Shiller talks; people should listen! Robert Shiller wasn't always a believer in the ability to call for market tops. He received his Ph.D. from the Massachusetts Institute of Technology in 1972 for his thesis: "Rational expectations and the structure of interest rates". Shiller offered an extension of the "efficient market theory" that argued buyers' and...(Read Full Post)

COMMENTS ON AMERICANTHINKER