Robert Shiller on how to rebound from the subprime mess

Yale professor of economics Robert Shiller offers advice, including wanting more financial innovation, the opposite of what a number of commentators have suggested.

As Arnold Kling notes

Shiller is a very independent thinker. He says that what we need is more financial innovation, not less. He says that we should not have been trying to urge so many people to take leveraged positions in homes, and that we should not be trying to maintain high house prices.

(HT: Greg Mankiw)