cheaprealty net

Potential housing losses are estimated in the trillions according to Shiller. Sound quality on the link is not great, but the testimony is worth hearing.

Shiller calls for new federal regulations for some kind of consumer financial protection agency, to review and approve the financial products offered in the mortgage market, to essentially ensure disclosure and truth in advertising, and also for other reforms in the appraisal business.

As far as the impact of sub-prime, Shiller emphasizes the risk is not just a short term recession, but a longer term drag on the economy.

This video testimony was posted to Youtube by the Speaker of the House of Representatives, Nancy Pelosi.  Thanks for sharing this info Nancy!