Shiller: Economy in ‘Worst Shape Since Great Depression’

Thursday, 19 May 2011 04:08 PM
By Greg Brown

Is the stock market about to take a 10-year nap? That’s the warning coming from fund managers and stock market historians, including Yale University professor and housing guru Robert Shiller.

Shiller sees stocks gaining between 2 percent and 3 percent during the coming decade. He sees no reason to believe in a resurgence of consumer spending, considering that the real unemployment rate, by his calculation, is 15.9 percent, and housing is headed south again.

“Even at this point, with the recession technically over, we are in the worst financial shape we've been in since the Great Depression,â€