Tuesday, August 05, 2008

Robert Shiller Interview: The Subprime Solution


Professor Shiller says the government should bail out homeowners. I generally disagree with him. Instead, I agree with Dean Baker's view that in bubble markets, trying to keep troubled homeowners paying their mortgages is actually harmful for them.

The video is about 20 minutes long. EconLog has a review of Shiller's new book here.