ROBERT SHILLER: It Looks Like The Bond Market Is A ‘Bubble’

Robert Shiller

Yale professor and economist famously called two of the biggest bubbles of all time: the dot-com bubble and the housing bubble.  Both times, he published an edition of his book Irrational Exuberance, which described and predicted each respective bubble.

So when Shiller talks about asset bubbles, people listen.

So listen up.

Shiller was speaking at a conference in Norway this morning, reports Bloomberg’s Stephen Treloar, where he invoked the ‘b’ word once again.

The U.S. bond market surge that has pushed debt yields to record lows may constitute a “bubble,” said Robert Shiller, a Yale University economics professor who predicted the collapse of the U.S. housing market.

“I would say we’re at record low” on long-term rates, the co-creator of the S&P/Case-Shiller home-price index said today at a conference in Oslo. There has been “gradually increasing confidence in U.S. debt” in the past 30 years, he said.