Economy at tipping point, double-dip risk: Shiller
By Leah Schnurr
NEW YORK | Thu Jun 9, 2011 4:57pm EDT
NEW YORK (Reuters) - Recent housing and employment data suggests the U.S. economy is at a tipping point where a double-dip recession is possible and home prices could have much further to fall, a veteran economist said on Thursday.
Robert Shiller said the recent uptick in unemployment is not yet enough of a sign as to which way the recovery is heading. But if unemployment continues to rise in the coming months, it could suggest another recession.
"Whether we call it a double-dip or not, I think there is a risk," Shiller told Reuters Insider television in an interview.
Likewise, data showing U.S. home prices fell into a double dip in March could prove to be either a seasonal effect over the winter months or part of a downward trend.
"My gut feeling is we might see a continuation of the decline" in home prices, Shiller said earlier on Thursday at a Standard & Poor's housing summit.
He added that a 10 percent to 25 percent slump in real home prices "wouldn't surprise me at all," though he cautioned that was not a forecast.
Full story: http://www.reuters.com/article/2011/06/09/us-usa-housing-shiller-idUSTRE75839I20110609
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