Robert Shiller Sees Housing Market Burst In Brazil

Robert Shiller thinks that the housing market in Brazil is dangerously inflated, and he's expecting the emerging market's bubble to burst, further eroding investor confidence. Shiller's comments were reported by Bloomberg this afternoon. A housing bubble would be the latest addition to a growing list of problems in the Brazilian economy.

Brazil has faced its share of problems in recent quarters, with persistently high inflation complementing an already sluggish economy. The Brazilian Central Bank rose its key interest rates to 9 percent at the end of August in order to combat the country's...