Economist Shiller Worries G7 Statement Insufficient To Aid Market

Source: Dow Jones

WASHINGTON -(Dow Jones)- The statement from the Group of Seven most industrialized nations is too "blandly-worded" to revive market sentiment from the worst financial crisis in decades, Robert Shiller, Yale University economics professor said Sunday.

"I am worried about the stock markets Monday," Shiller told Dow Jones Newswire on the sidelines of a seminar in Washington. "The idea that this statement will boost market sentiment substantially doesn't seem right."

While he lauded the measures policymakers have taken over the past month against the crisis, he said the bailout needs to be done in such a fashion that it has a semblance of fairness.

Even though the U.S. government has promised to help homeowners facing foreclosure, so far that has been merely a promise and not real action, he said, while 10,000 U.S. homeowners a day are losing their homes in foreclosures.

"There is an underlying anger that is being developed," said Shiller, who published a book about the subprime mortgage crisis earlier this year and helped develop the S&P/Case-Shiller home price indexes.



Read more: http://tinyurl.com/3vhgs6

A Barclays Capital guy ought to know... http://www.nytimes.com/2008/10/13/business/13europe.html?ref=world


"There was even talk of halting trading on world exchanges until the new measures are promulgated and digested by market participants."

"Hans-Jörg Rudloff, the chairman of Barclays Capital, said closing world financial markets for two or three days might provide time needed to work out solutions to the global banking crisis, Bloomberg News reported, citing an interview with the Swiss newspaper Sonntag. In the interview, Mr. Rudloff called the current crisis “probably worse” than the stock market crash of 1929. The Italian prime minister, Silvio Berlusconi, mused publicly about a market shutdown on Friday in Washington, but later retracted his statement."

it's pn the chicago mercantile exchange. you can long or short cities like dc. he's an interesting, boyish prof. does he not know the u.s. mkt is closed on monday?

US and Canadian markets will be shut. The rest of the world will kick off in a couple of hours (Australia and rest of Asia). There will be lots of fun in many places in Monday (but I expect mostly a holding of breath while the G7 meets). The fun begins back in the US and Canada on Tuesday.

been what I heard on the radio on fri, but I swaer they sayid 'u.s. markets closed on monday.' my bad! thanks for setting it straight.