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Shiller’s Timing Is Impeccable… Again at Trader’s Narrative

Shiller’s Timing Is Impeccable… Again

If you were around the dot com bubble years, you remember that there were a few people who were “non-believers”. Those few who didn’t believe that “this time its different”. One of them was Robert Shiller, an economist who got his first 15 minutes of fame for renting to Allan Greenspan, the now infamous phrase, “irrational exuberance”.

Most economists would give their left (insert apendage here) to have this much insight. But Shiller goes one step beyond, he not only nails the predominant theme of the day, his timing is impeccable.

Book Cover His first mainstream book, Irrational Exuberance, was published in early 2000, just as the Nasdaq reached its zenith and started to feel top heavy.

I remember watching many of his interviews back then. It was as if the market itself seemed to go out of its way to make the case on his behalf. He lucidly explained to millions of new taxi drivers turned traders and “get rick quick” investors why their dreams were melting faster than an ice sculpture in the Gobi desert.

He’s Back!
Book Cover Shiller is back with another book, The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to Do about It

I haven’t read it yet (but hope to as soon as possible) so I can’t give you my review but from everything that I’ve read online about it from other reviewers and from the interviews that Shiller has been doing, I think he has done the amazing feat of producing a hit sequel to his original.

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4 Responses to “Shiller’s Timing Is Impeccable… Again”  

  1. 1 Brandon

    I think Mr. Shiller is a is a very good writer and his call in 2000 was very prescient. However I’m not sure his call that FDR style economic experimenting and the setting up of new government run institutions like Fannie and Freddie are the answer.

  2. 2 Babak

    Brandon, I haven’t read the book so I don’t know the details of what he suggests. Do you have some specifics? I’d love to hear what he proposes as an alternative. Especially since we’ve effectively gone to Plan B with today’s nay vote.

  3. 3 Brandon

    No I haven’t read the book. I was responding to what he said in the video. He advocates FDR style government response but all FDR did was waste time until the fed stopped taking money out of the economy and start pumping money into the economy in large amounts. These two switches by the fed are both what caused the great depression and what ended it. FDR gets credit because no one understood or was paying attention to what the fed was doing. All FDR did was create some gov institutions and use some of the feds money. It just makes me scratch my head to hear a professor from such a prestigious school say things like this.

  4. 4 Brandon

    BTW I hope you weren’t long into today’s disaster. Just imagine what would happen if the youknowwho’s were successful in attack against us right now.

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