Professor Shiller warns Britain may suffer a double recession

Professor Shiller warns Britain may suffer a double recession

business.timesonline.co.uk

One of the world's most influential economists warns today that Britain faces the prospect of two recessions in quick succession.

Robert Shiller, Professor of Economics at Yale University, said that the recent stock market bounce should be treated with caution.

He likened the current sense of optimism to a marital row. “You don't know whether the argument with your wife is really over or not. Is the problem something that your spouse will bring up again, and again?”

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He added: “In 1931 in the US, President Hoover unveiled his recovery plan - there was a huge stock market rally — the market improved but it didn't hold because bad news kept coming in. Increased confidence can be a self-fulfilling prophecy but it doesn't always hold.”

It's remarkable how positive politicians are, or it simply shows their lack of knowledge regarding history and economics. This crisis is all but over, no matter how positive they are trying to pretend the situation is. The UK seems to be hit harder than other Western European economies, partly explained by the huge bubble in their housing market.

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