Schiff paints with a pretty broad stroke, but he’s been fairly accurate for a few years and taken a lot of heat early on when things were rosey and he predicted trouble. But he does lack hard data for a lot of what he predicts. His book is a good example. He should try to be a little more like Marc Faber and get some data to back his conclusions.
Having said this, prices tend to behave like a pendulum and over correct in either direction. So we could go way low before returning to equilibrium. Touching or going beyond 2000 prices does not seem too far fetched. 2009 is going to be an interesting year as unemployment rises and more financial devistation comes home to roost.