Peter Schiff: Fed Creating Another Housing Bubble, ‘Day Of Reckoning’ Early In Obama’s Second Term

First it was “crash prophet” Jeremy Grantham warning:

Courtesy of the above Fed policy, all global assets are once again becoming overpriced.

Now, Peter Schiff is saying the same about housing.

And that America’s “day of reckoning” is right around the bend.

From a March 1 entry posted on The Schiff Report YouTube video blog:

The Fed influenced the housing market during the bubble predominantly by influencing the short end, making it easier for people to take out ARMs. Today, the Fed is influencing the housing market not predominantly by influencing adjustable rate mortgages, but by outright buying 30-year fixed-rate mortgages to drive mortgage interest rates down to record lows. But in both cases, it was the Fed’s interference that inflated the prices, inflated the bubbles, and there’s going to be a disastrous consequence when this bubble bursts. Although this bubble, is not going to be, I think, as large as the previous bubble. I think the consequences will be much bigger, as the Fed is not going to succeed in elevating home prices. But what they are succeeding at doing is transferring significant percentages of bad mortgages from the private sector to the Federal Reserve. In fact, the federal government has never been more involved in the housing market than it is today. Not only does the government insure over 90 percent of the mortgages, through the FHA, through Fannie, and Freddie. But now the government owns the mortgages. The Federal Reserve is financing them. The Federal Reserve is buying $45 billion worth of mortgages every month. So the government is the housing market…

Now President Obama, we’s got a bigger bubble going during his presidency, and he ain’t getting out of Dodge either. Only this time, I think, the bubble is going to burst not late in his second term, but early. And the difference is going to be- there are no more bailouts. This is the last bubble. This is the biggest bubble. In my book, The Real Crash: America’s Coming Bankruptcy: How to Save Yourself and Your Countryicon, I call it the “government bubble.” That’s what we have. This is the final bubble, and there is no bailout. We’re finally going to have to deal with the consequences of our profligacy. And the problem is, because we’ve kicked the can down the road for so long, right? We’ve papered it over with so much inflation, that the problems have gotten that much worse, which means when we finally are forced to confront them. And again, we’re going to be forced to do it. We’re not going to do it on our own. We’re not going to voluntarily check into rehab. We’re going to have to be forced to do it, because we’ve hit rock bottom, and the world has done an intervention. This “day of reckoning” is coming. And it’s not because of the sequester. Everybody is making a big deal about how painful this sequester is supposed to be. Well this is nothing compared to what’s really going to happen when we really have to swallow the bitter tasting medicine to restore health to an economy that is virtually going to be on its deathbed as a result of all the bad medicine that has been forced-fed it over the years by the Federal Reserve, by Congress, to mask the symptoms while the underlying disease gets that much worse.


“Bernanke Almost Comes Clean On ‘Exit’ Strategy”
YouTube Video

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Share

Tags: , , , , , , , , , , , , , , ,

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

This Project Dedicated to St. Jude
Patron Saint of Desperate Situations



Please Rate this Blog HERE



happyToSurvive
Advertising Disclosure here. "Code Needed"=Promo Code Found On Advertiser Website. Ad Captions Last Updated 12/3/16.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service Taking Care Of $2 Billion For More Than 60,000 Users. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
Buy Gold And Silver Coins 1 Oz. Silver Rounds (Secondary Market), 10 Oz. Silver Bars (Secondary Market), 100 Oz. Silver Bars (Secondary Market), Australian, Canadian, Chinese, French, Mexican Gold Coins On Sale! Free Shipping On U.S. Orders $99 And Up. BGASC Reviewed HERE.
ANY CHARACTER HERE
3-Month Food Supply $397 Limited Time Only; Survival Starter Kit X-Mas Tote $74.95 + Free Shipping; Alexapure Pro Water Filtration System $147; Patriot Seeds Gift Set $69.95; Big Savings On "Deal Of The Day" Page; Free Shipping On Orders Over $79. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
bullet proof vestsWorld's First Bulletproof Baseball Cap Only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) Only $169; Bulletproof Backpack/Messenger Bag Panel Only $99. BulletSafe Reviewed HERE.
ANY CHARACTER HERE
Blade HQ Knives Holiday Sale!; Free Patch Orders Over $49 (Code Needed); Free Shipping All Domestic Orders Over $99. Blade HQ Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Discontinued Title Sale- Savings Up To 75% Off Original Price. Paladin Press Reviewed HERE.
 

Categories

Archives

Prepper Website

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • Related Reading: Malca-Amit’s New UltraVault Safe Deposit Box Service Profiled By South China Morning Post
    Malca-Amit, “widely recognized as the world’s leader in diamonds, jewellery and precious metals logistics and storage,” recently launched its UltraVault safe deposit box service in Asia. According to the UltraVault website: Our innovative portable safe deposit box enables you to: -View, withdraw or store your assets any time of the day or night -Select the […]
  • Related Reading: The Economic Times Article On India’s Safe Deposit Boxes
    I’ve had India on my mind recently. In particular, I’ve been thinking about the country’s safe deposit box industry in light of the ongoing “currency experiment.” Vikram Doctor over at The Economic Times (India) has also been speculating as to what the blitzkrieg on cash means for safe deposit boxes, publishing a piece entitled “Crackdown […]
  • Related Reading: SurvivalBlog.com Post About U.S. Bank Safe Deposit Boxes
    Back on February 2 I blogged about James Wesley, Rawles (comma not a typo), an author, lecturer, and founder/Senior Editor of SurvivalBlog.com, a preparedness blog that receives more than 320,000 unique visits per week. The former U.S. Army intelligence officer had just advised SurvivalBlog readers to “get a safe deposit box offshore, and store some […]
  • Happy Thanksgiving
    Just wanted to wish the American readers of Offshore Safe Deposit Boxes a Happy Thanksgiving. Thank you for your continued readership and support (that applies to everyone!). Christopher E. Hill Editor
  • U.S. Bullion Dealer Miles Franklin Launches Private Safe Deposit Box Program In Canada
    While pulling material together for the blog this morning, I learned about a new “offshore” safe deposit box program that’s just been launched by a well-known American precious metals dealer. Andrew Hoffman, Marketing Director for Miles Franklin (“one of America’s oldest, most trusted bullion dealers”) wrote on SilverSeek.com on November 2: We’ve spent more than […]