Economist Robert Shiller On Housing Bubble: "Are We Off To The Races Again?"

Even as we continue to unwind from the biggest housing crash in history, a renowned economist is warning a new mortgage bubble could be dangerously brewing.

In a riveting interview on Fox Business, Robert Shiller, the Yale economist who was the first to predict the massive mortgage blow up of 2008, said he was alarmed by the bubble-like characteristics occurring in areas around the country.

"I think in cities like Phoenix and San Francisco we might be seeing some pretty big things developing," Shiller said.

"These things take you by surprise. Bubbles occur in the least optimal times. That's because people want to buy before the news. So, in the midst of the recession you could start a bubble."

In July, the median price for new homes sales in the San Francisco Bay hit its highest level since August of 2008. And, according to one study, nationwide foreclosure rates dropped to its lowest levels since 2007.

"The real question in my mind is "Are we possibly off to the races again?," Shiller asked. "People there are very speculative-minded."

Description: https://moneymorning.com/images2/pyr_screenshot_5433.jpgThis presentation shows how banks are escalating the collapse...

As worrisome as this trend may be, another economist warns of far bigger economic problems on the horizon.

In a newly released documentary that went viral last month, Dr. Chris Martenson, a pathologist and former VP of a Fortune 300 company says he has discovered a "frightening pattern"... one that points to a massive economic catastrophe unlike anything ever seen.

"My team of scientists, economists and geopolitical experts found an identical pattern in our debt, total credit market, and money supply that guarantees they're going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.

"And what's really disturbing about these findings is that the pattern isn't limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well."

According to Martenson: "These systems could all implode at the same time. Food, water, energy, money. Everything."

Another member of this team, Keith Fitz-Gerald, the president of The Fitz-Gerald Group, went on to explain their discoveries.

"What this pattern represents is a dangerous countdown clock that's quickly approaching zero. And when it does, the resulting chaos is going to crush Americans," Fitz-Gerald says.

Dr. Kent Moors, an adviser to 16 world governments on energy issues as well as a member of two U.S. State Department task forces on energy also voiced concerns over what he and his colleagues uncovered.

"Most frightening of all is how this exact same pattern keeps appearing in virtually every system critical to our society and way of life," Dr. Moors stated.

Description: https://moneymorning.com/images2/pyrvid2.pngThe work of this team garnered such attention, they were brought in front of the United Nations, UK Parliament, and numerous Fortune 500 companies to share much of their findings. Click on the short video above to see a sample. to see charts, facts, and details.

"It's a pattern that's hard to see unless you understand the way a catastrophe like this gains traction," Dr. Moors says. "At first, it's almost impossible to perceive. Everything looks fine, just like in every pyramid scheme. Yet the insidious growth of the virus keeps doubling in size, over and over again - in shorter and shorter periods of time - until it hits unsustainable levels. And it collapses the system."

Martenson points to the U.S. total credit market debt as an example of this unnerving pattern.

"For 30 years - from the 1940s through the 1970s - our total credit market debt was moderate and entirely reasonable," he says. "But then in seven years, from 1970 to 1977, it quickly doubled. And then it doubled again in seven more years. Then five years to double a third time. And then it doubled two more times after that.

"Where we were sitting at a total credit market debt that was 158% larger than our GDP in the early 1940s... By 2011 that figure was 357%."

Dr. Moors warns this type of unsustainable road to collapse can be seen today in our energy, food and water production. All are tightly connected and contributing to the economic disaster that lies directly ahead.

Do these charts and graphs prove that the Obama Administration’s current economic path is headed for disaster?

According to polls, the average American is sensing danger. A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply troubling event.

Fitz-Gerald says people should take steps to protect themselves from what is happening. "The amount of risky financial derivatives floating around the globe is as much as 20 times size of the entire GDP of the world," he says. "It's unsustainable and impossible to unwind in any kind of orderly way."

Moreover, he adds: "People can also forget that the FDIC can only cover a fraction of US bank deposits. It's a false sense of security. Just like state pensions, which could be suspended at any time. A collapse could wipe out these programs. Entitlements like Social Security and Medicare are already bankrupt and simply being propped up."

We can see the strain on society already.

In two years, Congress won't have any money for transportation, reports the Washington Post. Cities like Trenton, NJ have layed off one-third of their police force due to budget cuts. And other cities like Colorado Springs, CO removed one-third of streetlights, trashcans, and bus routes, reports CNN.

Fitz-Gerald also warns of a period of devastating inflation. A recent survey, reports USA Today, notes that in the coming years it could take $150,000 a year in household income for a family to afford basic living expenses - and maybe go out to a movie.

Right now, in fact, "52% of Americans feel they barely have enough to afford the basics."

"If our research is right," says Fitz-Gerald, "Americans will have to make some tough choices on how they'll go about surviving when basic necessities become nearly unaffordable and the economy becomes dangerously unstable."

"People need to begin to make preparations with their investments, retirement savings, and personal finances before it's too late," says Fitz-Gerald. Description: http://moneymorning.com/report/images/endstop.png

What The Experts Say: The team has released their investigation to the public and for a limited time you can view a private airing of it online. Learn the steps you can take to prepare your wealth, investments and way of life for this looming catastrophe. Click here to learn how some of the foremost experts in the world recommend you position yourself for the uncertain time ahead. And receive a free copy Chris Martenson's ground breaking book.

Robert Shiller On Housing Bubble: "Are We Off To The Races Again?"

Even as we unwind from the biggest housing crash in history, a renowned economist is warning a new housing mortgage bubble could be dangerously brewing.

In a riveting interview on Fox Business, Robert Shiller, the famed economist who invented the Case-Shiller index, widely considered the nation's most accurate barometer of home sales, said he was alarmed by the bubble-like characteristics occurring in areas around the country.

"I think in cities like Phoenix and San Francisco we might be seeing some pretty big things developing," Shiller said.

"These things take you by surprise. Bubbles occur in the least optimal times. That's because people want to buy before the news. So, in the midst of the recession you could start a bubble."

In July, the median price for new homes sales in the San Francisco Bay hit its highest level since August of 2008. And reports indicate that private equity and hedge fund speculators have been buying up foreclosed properties in record amounts, driving prices higher.

"The real question in my mind is "'Are we possibly off to the races again?'" Shiller asked.

Economic bubbles of every kind are akin to a classic pyramid scheme, in which investors on "the bottom" are paid with new money coming in from investors on "the top."

The pyramid can pay out forever, but only if it has exponential growth forever. "Yet it's impossible for exponential growth to continue for very long," says Dr. Chris Martenson, a pathologist and former VP of a Fortune 300 company.

Description: https://moneymorning.com/images2/pyr_screenshot_5433.jpgThis presentation shows how banks are escalating
the collapse...

 

He and his team of economists have just shown in a new documentary that this pyramid pattern is running rampant right now in our debt, total credit market, and money supply. And the pattern guarantees they're going to fail, says Martenson.

This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.

This presentation shows how banks are escalating the collapse...

"And what's really disturbing about these findings is that the pattern isn't limited to our economy. Martenson and his team found "the same catastrophic pattern in our energy, food, and water systems as well."

According to Martenson: "These systems could all implode at the same time. Food, water, energy, money. Everything."

Another member of this team, Chief Investment Strategist Keith Fitz-Gerald, the president of The Fitz-Gerald Group, went on to explain their discoveries.

"What this pattern represents is a dangerous countdown clock that's quickly approaching zero. And when it does, the resulting chaos is going to crush Americans," Fitz-Gerald says.

Dr. Kent Moors, an adviser to 16 world governments on energy issues as well as a member of two U.S. State Department task forces on energy also voiced concerns over what he and his colleagues uncovered.

"Most frightening of all is how this exact same pattern keeps appearing in virtually every system critical to our society and way of life," Dr. Moors stated.

Description: https://moneymorning.com/images2/pyrvid2.pngThe work of this team garnered such attention, they were brought in front of the United Nations, UK Parliament, and numerous Fortune 500 companies to share much of their findings. Click on the short video above to see a sample.

"It's a pattern that's hard to see unless you understand the way a catastrophe like this gains traction," Dr. Moors says. "At first, it's almost impossible to perceive. Everything looks fine, just like in every pyramid scheme. Yet the insidious growth of the virus keeps doubling in size, over and over again - in shorter and shorter periods of time - until it hits unsustainable levels. And it collapses the system."

Martenson points to the U.S. total credit market debt as an example of this unnerving pattern.

"For 30 years - from the 1940s through the 1970s - our total credit market debt was moderate and entirely reasonable," he says. "But then in seven years, from 1970 to 1977, it quickly doubled. And then it doubled again in seven more years. Then five years to double a third time. And then it doubled two more times after that.

"Where we were sitting at a total credit market debt that was 158% larger than our GDP in the early 1940s... By 2011 that figure was 357%."

Dr. Moors warns this type of unsustainable road to collapse can be seen today in our energy, food and water production. All are tightly connected and contributing to the economic disaster that lies directly ahead.

Do these charts and graphs prove that the Obama Administration’s current economic path is
headed for disaster?

According to polls, the average American is sensing danger. A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply troubling event.

Fitz-Gerald says people should take steps to protect themselves from what is happening. "The amount of risky financial derivatives floating around the globe is as much as 20 times size of the entire GDP of the world," he says. "It's unsustainable and impossible to unwind in any kind of orderly way."

Moreover, he adds: "People can also forget that the FDIC can only cover a fraction of US bank deposits. It's a false sense of security. Just like state pensions, which could be suspended at any time. A collapse could wipe out these programs. Entitlements like Social Security and Medicare are already bankrupt and simply being propped up."

We can see the strain on society already.

In two years, Congress won't have any money for transportation, reports the Washington Post. Cities like Trenton, NJ have layed off one-third of their police force due to budget cuts. And other cities like Colorado Springs, CO removed one-third of streetlights, trashcans, and bus routes, reports CNN.

Fitz-Gerald also warns of a period of devastating inflation. A recent survey, reports USA Today, notes that in the coming years it could take $150,000 a year in household income for a family to afford basic living expenses - and maybe go out to a movie.

Right now, in fact, "52% of Americans feel they barely have enough to afford the basics."

"If our research is right," says Fitz-Gerald, "Americans will have to make some tough choices on how they'll go about surviving when basic necessities become nearly unaffordable and the economy becomes dangerously unstable."

"People need to begin to make preparations with their investments, retirement savings, and personal finances before it's too late," says Fitz-Gerald. Description: http://moneymorning.com/report/images/endstop.png

What The Experts Say: The team has released their investigation to the public and for a limited time you can view a private airing of it online. Learn the steps you can take to prepare your wealth, investments and way of life for this looming catastrophe. Click here to learn how some of the foremost experts in the world recommend you position yourself for the uncertain time ahead. And receive a free copy Chris Martenson's ground breaking book.