Nobel Laureate Signals Worried, Fearful U.S. Markets: “Financial Bubble Ready to Burst”

by | Sep 15, 2015 | Commodities, Headline News | 40 comments

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    As if there haven’t been enough financial worries, now a Nobel economics laureate is now signalling the alarm.

    According to Yale University’s market scholar Robert Shiller, confidence levels are at an all time low for the 21st Century – with clear indications that investors see the market as overvalued, and vulnerable to collapse.

    The Financial Times reported:

    A growing number of investors believe that US stocks are overvalued, creating the risk of a significant bear market, according to research by Yale University market scholar Robert Shiller.

    … [H]is valuation confidence indices, based on investor surveys, showed greater fear that the market was overvalued than at any time since the peak of the dotcom bubble in 2000.

    “It looks to me a bit like a bubble again with essentially a tripling of stock prices since 2009 in just six years and at the same time people losing confidence in the valuation of the market,” he said.

    However […] it remained impossible to time any fall in the market…

    But even news that a pop in the bubble and a subsequent collapse could occur, seems like a foregone conclusion for Shiller, who is hardly surprised:

    “It’s been talked about for so long, everyone knows that it’s coming. It’s just not much of a big deal.”


    He said the recent bout of volatility “shows that people are thinking something, worried thoughts. It suggests to me that many people are re-evaluating their exposure to the stock market. I’m not being very helpful about market timing but I can easily see aftershocks coming”.

    Not a big deal isn’t how most financial analysts and observers would put it, but nonetheless, the warning is there: the stock market bubble is set to burst, and a collapse is likely coming. Aftershocks to follow. Even ivy league financial authorities agree.

    Shiller made extended remarks on the situation is this video interview with the Financial Times:

    RT reported on Shiller’s comments, noting that the situation “may result in a major bear market – characterized by falling prices and widespread pessimism.”

    Though the Federal Reserve is still rumored to be considering a rate increase that could shake the financial landscape that the world moves upon, Shiller dismissed the idea that a stock market crash would be timed specifically with the hike from zero percent interest – even if it altered a seven year norm.

    The world knows it is coming. The point is that investors are spooked, and the stock market has clearly been built up on a huge bubble of artificially high prices for things like real estate. The levels easily compare with the potential to match or exceed the 2000 dot com bubble burst.

    In fact, things could be much worse than both that crash, and the 2008 global financial crisis that has precipitated this new disaster.

    Read more:

    “On the Verge of a Massive Collapse”: Ron Paul Says Stock Market Headed for a Day of Reckoning

    How to Survive a Stock Market Crash: “Take These Immediate Steps”

    Expert Sees Repeat of Horrors He Predicted: “Next Great Stock Market Crash is Imminent”

    “The Market Has Turned”: It Begins… So How Bad Will the Crash of 2015 Become?


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      1. Let the whole shithouse go up in flames. F u Ck IT! Survival of the fittest will ring true.

        • zero,

          That means you’ll be the first one to die, unless you go on your mythical rampage where you’re gonna kill em’all! What a fucking loser, go back to your video games where you’re REALLY dangerous, twat.

          • Quick, someone call the fire department. Zero just got badly burned!

        • It is not over until it is over. When the walls of Wall Street didn’t come tumbling down yesterday, people were bad-mouthing this site as doom-porn. The fact of the matter is that the collapse has already begun, evacuate the building, don’t wait around until it is too late. The building has been hit and the girders and pillars are shaking. Seconds, minutes, hours, days, what does it matter? It is time to get the hell out!

        • The rich ARE the “fittest”.

          If the (so called) “fittest” you’re thinking of can’t get on top of things when shit’s EASY… well then… when things are HARD…?

        • I’m with you, Zero!

      2. It seems all the pundits have been spewing this garbage since 08, anyone paying attention knows the market is rigged right down to the last point every single day! It will crash when those in control are good and ready and not a day before!

      3. Didn’t Obullshit get a Nobel prize also? See what that got us.

        Maybe one out of two might be right?????

        • You beat me to it Sgt., yeah O got a Nobel and we got the shaft.

        • I am a Shit Hit The Fan economic laureate, do i get to make predictions too?

          • john stiner.

            You Sure Can!

            But you have to handle the flack. It comes with the territory.

        • If anyone had the slightest doubt that the media was controlled all they had to witness was the orchestrated hype of Obama in news and entertainment circles post first term election. It was actually somewhat frightening with school kids chanting his name in unison on TV looking like an American version of the Hitler Youth. In the end however as Lincoln said, “You can fool all of the people some of the time and some of the people all of the time, but you can’t fool all of the people all of the time”.

          Its my belief that there is a high probability of an extreme economic fall late in this term. The cause is not his as Presidents have limited ability over the economy as its the realm of the banksters. Blame will be very quickly thrown his way like the, “Blame it on Hoover” of 1929 crash fame. TPTB will get him to take the fall and throw him under the bus. His actions and inactions in office and extended vacations will be compared to, “Nero fiddled while Rome burned”.

          Beware of the proposed, White Knight that rides to the rescue.

      4. We hear this just about daily here on the alt media, yet there is either no mention of any problems or that our economy is recovering from the lame stream media. Its like living in two different worlds and its exactly why I tell my wife we are in for some really bad shit soon. Just watching the liars and thieves on the idiot box is proof you had better already be well prepared. The evil basturds running this world will kill you and yours and not loose a minute sleep. Guess I will return the favor when the time and opportunity arises.

        • Take care of your family, sir

      5. Unlike any other time in history, the majority of trading today is done by high frequency trading machines, not people. This has produced a new paradigm in which consumer confidence is not such a major in the markets as it has been in the past. Computers don’t panic so all of these cycles, the shemitah, and all the rest of the human factors are pretty much out the window. This will continue for as long as the central banks can keep printing worthless fiat money and propping up the system. Will we see a rate increase this week? Absolutely not. What we will see is more QE.

        • I agree: we are run by machines now and that means they will just go to the computer and type up some more electronic digits. Call it QE, call it whatever, they will print, print and print. The system will just corrode and fall apart. I remember the 90s in Russia: good times if you had dollars: lots of cheap Jack Daniels and cheaper p#ssy. Happy days I do recall. Can’t wait for them to come back. Making credit too easy for most young punks to get was always a big mistake. They need to grind it to find it, if you know what I mean.

      6. Factual info is indeed harder to come by I’ve just been going to multiple alternative news sources everything from RT to government web sites a rational person can quickly come to one conclusion. Shit is about to hit the fan. No idea when where how or why. All one can do is whether the storm by keeping vigilante staying close to home and hearth see to your own help when you can and keep praying to whomever you call God.

        • JOHN

      7. Meh…I don’t see a stock bubble bursting as a SHTF situation on a broad scale. It would certainly cause a huge drop in my 401K but so did 2008 and I’m still a ways from retiring. Good to have supplies laid aside for the possible loss of a job, but I don’t see it as a major ‘bug out’ situation or something that is going to cause major civil unrest.

      8. Asset inflation is what passes for profits at a lot of corporations these days. When the assets deflate the bottom line won’t look so nice. Worked for a large corp. some time ago. One of the “assets” they listed was “Goodwill”. The value on the books for this was listed as $200 million. $200 million of goodwill. Are you kidding me? Makes you wonder how many corporations are doing the same thing.

        • All of them. I worked for a top 20 corp, though a bottom level manager. The entire culture was BS artists. NONE of them could have successfully run their own small business – unless it was a criminal one perhaps.

          Start looking at the stock market metrics. “Enterprise Value”. Ridiculous. Should be “Pump Value”. Take a look at Book Value. Is it legit? No __ way AMZN has its stated book. Take a look at “Total Debt”. Even the investopedia tells you that’s most often a BS number.

          My point is the BS culture is PERVASIVE. We live in a BS culture. Led by our leaders, of course. Can anything cut it?

          • My dad worked on contract with Enron for three months. He made $60 an hour and all he did was play solitaire for 8 hours a day. He later told me that he could tell that Enron was a total fraud by the people working there.

      9. Even big corporations keep several sets of books. One for the IRS, the stock holders, the employees and one real set of books.

      10. Stock in Nobel Laureates has fallen quite a bit in the last seven years.

      11. When the establishment clowns don’t care that the people know the shit’s going down, we must be getting closer. Let me know if TPTB start disappearing into their hidey holes.

      12. Who cares about the markets.
        The HFT,s are the only ones making money on shorts.
        If the fed raises rates , we stop buying.
        They have already printed far too much money, if the rates go up , a ton of cash will flow back in so fast that it will cause deflation and they know it.
        Alotta of good folks are gonna be hurt.

      13. Baltic dry index is dropping into the 700’s again… and beyond?

      14. The Obama clan is in need of a cell within Leavenworth…

      15. Somebody somewhere is gonna be right and somebody gonna be wrong. (POP shakes his head). I’ll hit the lights.

      16. Crash UP. Said it before. Saying it again. Stocks are not over-valued – the green stuff is losing value. Paper. what’s your company worth in paper. 1B papers? 10B papers? 100B papers? Does it really matter. Paper. That’s what the Shillers and crash alarmist don’t get. The “crash” does not have to be a drop in stock prices. If I can’t buy an acre of land for 1/20th of what I could 20 years ago then won’t company stock be 20x more than it was 20 years ago. Too much paper. Crash UP. (zimbabwe in slow motion)

        • In reality, the stock market has not gone up since 2007. The market is just reflecting the inflation in the prices of stock.

      17. Please stop giving economists more credit than they are due. There is no Nobel Prize in Economics. The award that economists give themselves is the “Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”

        Persons given this award are not Nobel Prize Laureates.

      18. Most of us have little and can’t find a job, so who gives a crap.

      19. I am a survivalist. I have had to be. The personal SHTF has happened a few times in 66 years. I’ve been homeless a couple of times. I prefer the wild to the city. Found potable water, shelter, and after the first time, what grows that is edible. That is why we are here, now. There are wild edibles, and I know where the good seeps are, and some caves, should that be necessary. Good friends, too. They will hold my back, and I’ll hold theirs.

        When national SHTF, I’ll miss the internet. But I have cooked on a fire, can do some repairs by hand, first aid, have killed chickens, seen goats and deer dressed out, and at times, I eat the weeds, so I know that purslane is edible, but bitter.

        I know that attempting to sleep on the ground means sharing my sleeping place with insects, or snakes, so I’ll defend my bed and the walls that protect my sleep. I may go down, but my life is filled with love and laughter and the abiding happiness of knowing My Lord.

        That I am still here means I’m a tough old bird. I’ll never give up, I’ll never surrender my freedom. What comes, comes. I’ll face it with all I have within.

        • Amen, kindred soul

      20. Hey, Didn’t that guy with bad haircut and nukes in DPRK get the Nobel Peace prize? Guess that gives Nobel Peace Prize its value. Nominee said that UN should get it because his belligerence brought USA and Chiner closer, so that why he was greatest contributor to peace last year. What a hoot! Hitler brought USA and USSR closer? Didn’t Dzugashvili?(Stalin was a Georgian, not Rusky and not that Georgia, Jimmy; don’t you have a house to paint?)

        “Give me $500 for what’s on that TP”, Alex —————-====================————Brown Chooz! YUK

      21. I guess my inside information is due to having worked in the wire transfer department of a major financial institution. I was responsible for desktop technical support, and I could write a book about the massive outflows of millions of dollars daily to offshore accounts. Some of the worst offenders were “healthcare” companies, United Health Care, Aetna, Met Life. Other companies were Disney, etc. Millions daily delivered offshore. I felt personally offended by this having had an ill child be denied life saving surgery due to budget cuts at a Children’s Hospital in my area. We had to go ballistic, and she finally got care, AFTER they took care of the teens with gunshot wounds. She lost a good portion of her intestinal system (due to the wait), and ended up in ICU. The hospital claimed they could not “afford” more trauma surgeons, in gang war torn Oakland California.

      22. They say this every time they get ready to buy into the stock market.

        BUY SIGNAL is being activated. Watch the market go BOOM!

      23. Record numbers of small investors are currently shorting the market, expecting a crash.

        For those not familiar, “shorting the market” is equivalent to an investor borrowing someone else’s stock, and selling it with the promise they will later buy it back and return it to the lender. Normally it’s a really bad bet because the market goes up about 90% of the time, and it will cost more to buy it back, but if the market drops, you can buy it back cheap and keep the difference. It can be very lucrative. If the market goes up they could owe huge amounts of cash to the lender to buy stock to cover that bet, and end up broke.

        Thus we see huge swings in such a volatile crashy market, because people need to buy stock at all cost to cover shorts in an up market. Point is millions of small investors are putting real money down betting this market will crash!

        Please balance this against the incredible resources of the Federal government and FED bankers, who now seem to see the stock market as too big to fail, and their next QE effort will be to just buy up the stock market to whatever price level they like. It’s really easy when they can just print money to do it!

        The can is being kicked down the road as we speak!

        The rest of the world is crashing however, and it’ll be interesting how long they can insulate the US markets from the contagion of depression. If the dollar gets too strong, government debt becomes inflated along with the dollar? If they allow a crash deflation can take on a life of its own and become unstoppable, also inflating debt.

        This is getting very interesting. I really think the FED will blink and not raise interest rates!

      24. This might be the best indication we have that the stock market won’t crash. Either that, or it indicates that the so-called Nobel economists have finally read the articles written by people who understand what’s likely to happen, most of which were posted weeks or even months ago.

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