In 2005, economist Robert Shiller gave talks warning about a housing bubble to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. He was ignored, and later called it an incidence of Groupthink. That same year, his second edition of Irrational Exuberance warned that the housing bubble might lead to a worldwide recession.Challenging the Crowd in Whispers, Not Shouts, Robert J Shiller, New York Times, 2008 Nov 1. As mentioned in Econned, by Yves Smith Also in 2005, economist Fred Harrison commented: "The next property market tipping point is due at end of 2007 or early 2008... The only way prices can be brought back to affordable levels is a slump or recession.”Bezemer, Dirk J, 16 June 2009. "“No One Saw This Coming”: Understanding Financial Crisis Through Accounting Models" In January 2006, financial analyst Gary Shilling wrote an article entitled: “The Housing Bubble Will Probably Burst”.How To Prosper In The Changing Real Estate Market In May 2006, JPMorgan's Christopher Flanagan, director of global structured finance research, warned clients of a coming housing downturn. In August 2006, economist Nouriel Roubini similarly warned that the housing sector was in "free fall" and would derail the rest of the economy, causing a recession in 2007. Joseph Stiglitz, winner of the 2001 Nobel Prize in economics, also said that the U.S. might enter a recession as house prices declined.
