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"The saving rate in the United States, the personal saving rate, has been declining since the early 1980s. We used to save 10% of our income, it got down to zero or negative, and so I think we were in an abnormal state, it wouldn't surprise me if we returned to something more like a normal saving rate and I think that would be a good thing in the long run, maybe not the short run."
"The short run fear is it will be a depressant on the economy".Robert Shiller on the stock market and housing:
"Both the housing market and the stock market have come down to within the range of normal levels. So you can't base it just on overpricing, and then we're in this very questionable economy. I would have to say that, you know I'm just torn, I don't know. I think though there's a significant risk of further declines in both the stock market and the housing market."Oh and he's starting a Case/Shiller Home Price Index ETF!
Source: Bloomberg TV