Fiscal flows indicate a forced dose of fiscal drag was implemented by the government sector during the "debt ceiling" debacle back in the summer, and perhaps this is what Shiller is now picking up on this in his advanced data. Since August 3rd, fiscal flows have been re-established and any economic weakness due to this temporary fiscal drag should be corrected going forward.
Wednesday, September 28, 2011
Yahoo!/Shiller: The economy has deteriorated significantly since July
Some video featuring Yale's Robert Shiller mostly related to his main area of focus, home prices. But in the interview, he discloses his observation that: "the economy looks weak now". So he must be looking at some type of real time data on general economic activity in advance of the standard government data releases on the economy.