Peter Schiff: Housing prices will go back to 2000 or lower…

[peterb]

For insight about the stock market, commodities and the housing market, check out Jim Rogers last book. I think that Chris Puplava just wrote a very good article on it as well. In terms of inflation adjusted, which you must do given its huge rise in the last 10 years, the Dow is at about 8000. Measured in Euro’s, in aint much better. And dont consider the CPI anywhere near accurate for inflation measurement. See http://www.shadowstatistics.com for accurate inflation and unemployment numbers.
We are about 10 years into commodities bull market and they historically last 15 to 20 years. What’s more important, they’re always inverse to the equities market. The US Govt has flooded the global financial system with so much US$ since 2001 that the dollar has been blown away. So this makes measurements in nominal $ very misleading. It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why. Give a read to Marc Faber as well. He’s had some great insight in the last 10 years.
At any rate, given that the Fed will continue to print $$ and the commodities market is far from over, we should see oil and other commodities continue to rise despite the global recession that starting happen. This was the case in the 1970’s. It is comforting to see supply/demand maintain it’s power in the market despite all the attempted manipulations by central bankers and large money managers! My 2 cents.

[kewp]

It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why.

Unfortunately, median income is actually going down.

Very unusual indeed.

[kewp]

It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why.

Unfortunately, median income is actually going down.

Very unusual indeed.

[kewp]

It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why.

Unfortunately, median income is actually going down.

Very unusual indeed.

[kewp]

It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why.

Unfortunately, median income is actually going down.

Very unusual indeed.

[kewp]

It’s also why almost every asset class has gone up in the last 8 years!! This is a VERY unusual event. And our extreme inflation explains why.

Unfortunately, median income is actually going down.

Very unusual indeed.

[peterb]

Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.

Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.

[peterb]

Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.

Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.

[peterb]

Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.

Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.

[peterb]

Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.

Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.

[peterb]

Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.

Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.

[kewp]

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it!

Commodities! That’s real growth, not something BS like home equity.

Think about it; what would show economic growth more than increased demand for energy and basic goods?

Everyone’s talking about inflation, but all I really see is huge asset deflation.

Yup. That’s what I’ve been saying all long, the dominant economic force these days is deflationary. Five dollar a gallon gas doesn’t seem like such a big deal when compared to job loss, foreclosure and bankruptcy.

[kewp]

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it!

Commodities! That’s real growth, not something BS like home equity.

Think about it; what would show economic growth more than increased demand for energy and basic goods?

Everyone’s talking about inflation, but all I really see is huge asset deflation.

Yup. That’s what I’ve been saying all long, the dominant economic force these days is deflationary. Five dollar a gallon gas doesn’t seem like such a big deal when compared to job loss, foreclosure and bankruptcy.

[kewp]

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it!

Commodities! That’s real growth, not something BS like home equity.

Think about it; what would show economic growth more than increased demand for energy and basic goods?

Everyone’s talking about inflation, but all I really see is huge asset deflation.

Yup. That’s what I’ve been saying all long, the dominant economic force these days is deflationary. Five dollar a gallon gas doesn’t seem like such a big deal when compared to job loss, foreclosure and bankruptcy.

[kewp]

If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it!

Commodities! That’s real growth, not something BS like home equity.

Think about it; what would show economic growth more than increased demand for energy and basic goods?

Everyone’s talking about inflation, but all I really see is huge asset deflation.

Yup. That’s what I’ve been saying all long, the dominant economic force these days is deflationary. Five dollar a gallon gas doesn’t seem like such a big deal when compared to job loss, foreclosure and bankruptcy.

[Author]

Posts