as early as 2005, yale economist robert shiller warned about the outsized gains in home prices. quote, significant further rises in these markets could lead eventually to even worse significant declines. the bad outcome to be that eventual declines could result in a substantial increase in the rate of personal bankruptcies, which could lead to a secondary string of bankruptcies, of fnlt institutions as well. another long run consequence could be the consumer and business confidence and another possibly worldwide recession. think about it. chairman bernanke was indeed aware of the growing dangers. however, the fed ignored risk identified by professor shiller and instead, forecasted that the housing market would eventually bounce back from what was viewed as a slowdown and that problems in the subprime market could be contained. in june 2007, speech, chairman bernanke said and i quote, fundamental factors, including solid growth in incomes and relative low mortgage rates should ultimately support the demand for housing and at this point, the troubles in the subprime sector seem un