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Robert Shiller, professor at University of Yale says he is optimistic about the Indian economy. He also adds that the Indian economy is strong enough to face crisis.

Some highlights:

Its hard to predict what the next crisis will be. It is hard to predict if there will be a European crisis.

We just went through many bubbles in the US. However there could be a bigger one coming due to our banking system, crisis of confidence, Europe.

The world is a puzzling place because of human psychology.

The middle east is also another unpredictable place, and any events possible effect on oil prices.

People expect Economists to predict too much, which is outside their ability.

The bubble really started in 2005 when the housing bubble started. We have been saying for five years that we are at the bottom. But it has not arrived.

A bigger crisis could be coming but it is hard to predict what it is. European defaults however would be the biggest event, which could spread to US banks failing [we noted this point in an article yesterday.]

The US is not going to bail out banks the last time it did again. However other scenarios like oil, or totally unexpected events like social unrest in countries.