Thursday, 6 November 2008
Mr Shiller...Mr Shilling?
Thanks Andrew for the video.
For some reason, I have been in the same view as Shiller in term of pessimism in the past year and a half.
There is a risk, non negligible that stock markets could revisit their 1996 level , same for housing. If such thing happens, then we will be fighting a depression not a recession.
Let's just hope that the later will happen - just a longer than usual recession. I'm more in the camp of a more severe than usual recession albeit still a recession that will last at least 2 years but then it will back to growth but a slow growth.
But no one can predict the future, at least one can manage risks: no more debt, more saving and holding into the current job...at least until the storm unravel...