Shiller on the economic rebound

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“… a social epidemic is supporting renewed confidence. This confidence can keep growing by contagion, as a kind of self-fulfilling prophecy, and we may see the markets and the economy recover further. But in an economy that is still unstable, the stories could also morph into different forms, the price feedback could turn downward and the dynamic could turn ugly again – just as it has in the past,” said Yale professor Robert Shiller via The New York Times.

More of Shiller’s views are discussed in the recent CNBC interview below.

Source: CNBC, August 31, 2009 and The New York Times, August 29, 2009.

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