Standard & Poor’s/Case-Shiller Index Founder Says Home Prices Could Surpass Depression Levels

New Haven, Conn.–Yale University economist Robert Shiller, creator of the Standard & Poor’s/Case-Shiller home price index, said Tuesday that U.S. housing prices could drop more than they did during the Great Depression, BusinessWeek reports.During a speech to the New Haven Lawn Club, Shiller called for more bailouts to prevent foreclosures and forecast price declines more…

New Haven, Conn.–Yale University economist Robert Shiller, creator of the Standard & Poor’s/Case-Shiller home price index, said Tuesday that U.S. housing prices could drop more than they did during the Great Depression, BusinessWeek reports.During a speech to the New Haven Lawn Club, Shiller called for more bailouts to prevent foreclosures and forecast price declines more than the 30 percent 1930s-era Depression drop.According to Shiller, home prices already have fallen 15 percent since 2006; they rose roughly 85 percent from 1997 until 2006–a period which Shiller called the biggest housing boom in U.S. history.The Standard & Poor’s/Case-Shiller home price index is thought to be a strong home price gauge because it studies price changes of the same property over a given time period.