The weakening housing market is reminiscent of 2007-08 subprime housing bubble and could start another recession, according to Nobel Prize-winning economist Robert Shiller. The Nobel laureate, who predicted the the mid-2000s financial crisis, said a recession now would not be as severe as a decade ago but there could be a "significant correction". He said the housing market does not react as quickly as the stock market, but has a momentum that ebbs and flows – and the current loss of momentum could tip over into recession if confidence drains out of the market.
The weakening housing market is reminiscent of the mid-2000s subprime housing bubble and could start another recession, according to Nobel Prize-winning economist Robert Shiller. The Nobel laureate, who predicted the 2007-08 financial crisis, said a recession now would not be as severe as a decade ago but there could be a "significant correction". He said the housing market does not react as quickly as the stock market, but has a momentum that ebbs and flows – and the current loss of momentum could tip over into recession if confidence drains out of the market.