Robert Shiller: "Home prices could slide for 20 years''

"Are We Entering An Economic “Ice Age”?"

rom eurasiareview........

"Slower growth means less activity and poorer earnings. It means there will be more layoffs, more cutbacks, and more retrenching. WSJ journalists Liz Moyer and Brett Philbin have already dubbed the coming months as “Wall Street’s Summer of Pain”, a moniker that draws from the fact that the present downturn is already “the longest slump since 2002″ and has seen the Dow drop below 12,000. Even Fed chairman Ben Bernanke has called the recovery “frustratingly slow”, although his assessment appears to be vastly understated. The housing market is already double dipping and Yale’s Robert Shiller figures the worst is yet to come. This is from the Financial Post:

“My gut feeling is we might see a continuation of the decline” in home prices, Shiller said earlier Thursday at a Standard & Poor’s housing summit. He added that a 10% to 25% slump in real home prices “wouldn’t surprise me at all,” though he cautioned that was not a forecast.

Shiller pointed to the glut of unsold homes on the market and the large amount of homeowners under water on their mortgages as pressuring prices.

As for when home prices might bottom, Shiller told Insider that was unclear and it was possible prices could slide for 20 years"............LINK