Copenhagen June 15, 2007 (LPAC)--The Danish financial daily Borsen reports today of warnings of a global housing collapse by Yale professor Robert Shiller to the web paper e24.no. According to Shiller the global housing market could collapse by 40 percent or more, also in Europe.

"People have a strange idea, that it cannot happen, but it is not only in the US where the prices can fall 20-40 percent," Shiller warns. He points to interest rates that in just 6 weeks have gone up three quarter percentage points. "The interest rate rise comes at a bad time. A lot of housing loans get higher interest rates and the creditors a tightening loan conditions. A higher long term interest rate will lead to an even greater fall in housing prices," Shiller warns.