Yale’s Shiller Says Now Is Not the Time for a Boom-Bust Death Knell

Jan.24 -- Yale University Professor Robert Shiller discusses the boom-bust cycle, market exuberance, and a return to economic dynamism. He speaks at the World Economic Forum’s annual meeting in Davos, Switzerland on "Bloomberg Surveillance."

[srqpdq]

These interviewers are only looking to have their biases confirmed.

[resinsmp]

I like to think of the bust part of the cycle as a healthy and necessary "pruning" process much like that of taking care of a rose bush. Throughout the cycle, dead or unhealthy weight must be removed such that more deserving businesses are allowed to thrive. Trying to artificially manipulate the cycle too long will eventually cause the entire plant to die.

[stephenlight]

How do you spend this many minutes and produce nothing of value? Have I missed something or is this a completely useless summary of the current state of the global economy? Also, as usual, journalists love the sound of their own voice.

[frostmelody]

the interviewer spends more time talking than the interviewee... shuddaup and let the man talk

[scoutjohnson]

Today is 25/ March 2020. Shit has hit the fan. Prof. Shiller’s concerns are confirmed.

[ac]

Irrational exuberance, or are the baby boomers getting serious about saving for retirement and pouring in. Lack of alternatives isn't helping either. Feels more like complacency.

[barrycalvert]

You can shill is NOW on the payroll of the FED. Don't tell the overall truth throwing us under the bus and we will continue to pay you 500K a year. Show up for 4 shows a, years, put in one months wprk, and we will print your pay.
Starting with this first check of 500K circa 2002

[AllThingsFunny]

Stupid questions. No journalists or interviewers left in America.

[joeboucher]

I guess the old Bloomberg boy gets that one wrong he's an economist. LOL wrong answer who writes books for boys

[joegage]

Guess if the regulator doesn’t intervene to increase the value of the dollar vs. stocks, some external event will do it. Otherwise capital staying in the same hands would bar millennials from ever profiting from market growth. Booms and bust are healthy for society

[wolfman]

Talking about building a narrative? Doesn't Robert understand that he is not helping these two shmoes to build a narrative of doom and gloom from an outstanding economy. The one guy can't drop enough names in his questioning in order to impress Schiller. Not a very good interview.

[TonyTrupp]

The economies growing slower than the last few years under obama. Job growth has slowed a since then too. I don’t know why anyone gives trump credit for a roaring economy. This administration’s largest impact have been the massively growing deficit, which is going to bite us when the next recession hits.

[KingLutherQ]

Irrational exuberance is when "experts" proclaim that this time it is different
1929: "every stock I buy goes up. I must be a genius. my barber made twice I did, so he's a genius too"
1999: "profits are no longer important. what counts the most is growth or anything with a dot com"
2007: "land and real estate are limited resources. people make babies. therefor real estate prices will go up forever."
2020: "everything is overpriced and treasury yields inverted last year - but no bust yet. therefor the boom-bust cycle has ended."

[nbme-answers]

Better to have Bob on Bloomberg than not have him. Television viewing public wants "answers". But the best professors don't furnish their students with answers; they furnish them with ways of thinking. Much more valuable than a jar of pickled red herring.

[Amoses]

"horatio alger... he was an economist where?"

[marocainaujapon]

I hate it when journalists talk more than the hosts.

[kdausu]

Yeah, let me ask you a question and not let you answer.

[dmblum]

This guy said the stock market was overvalued four years ago. I take him seriously, but if I had acted on it I would have lost a lot of money. The stock market is never "overvalued" or "undervalued". It is always "currently valued". Figuring out if it's a bargain is the tricky part.

[scottwilliams]

This market is like the Kardashians. How can it go on?

[mktwatcher]

I wish to hell that Schiller would be more direct and get to the damn point about what he thinks. He just sounds non-commitive. He always beats around the bush.