Robert Shiller On Why Operation Twist Won't Help The Housing Market

Robert Shiller

Yale Professor Robert Shiller, who famously predicted the housing bubble, thinks an lower mortgage rates caused by “Operation Twist” may not bring people back to the housing market.

From Bloomberg:

“Operation Twist in the ’60s wasn’t found to be a great success either,” said Robert Shiller, an economics professor at Yale University and co-creator of the S&P/Case-Shiller home- price index.

Homeowners are relatively insensitive to mortgage rates when they are lacking confidence,” he said. “The dramatic thing that is happening now is that their job isn’t secure, if they even have one.”

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