Nobel prize-winning economist Robert Schiller
Nobel prize-winning economist Robert Schiller can’t help but notice certain similarities in America’s housing sector to the run-up just before the Great Recession.
“Housing is driven by narratives. Before 2007, the narrative was flipping houses [and the belief that] home prices have always gone up,” the Yale economist said during an interview with Yahoo Finance’s YFi PM. “Then, after the Great Recession, it was tragic narratives about people who lost their home, or dangers of borrowing too much or lending too much. It’s been 10 years since the crisis. Now, those narratives are starting to be forgotten.”