Nov 2006 Peter Schiff Mortgage Bankers Speech Part 4 of 8

[sha370z]

people took out loans on dead people . one guy had 20 homes loans 

[sha370z]

a women had 6 loans for 1.3 million and in 2006 she was broke it was on dateline show

[sha370z]

people say they made $400,000 a year

[Esoparagon]

He picked it perfectly and I bet he made a mint lol. The mainstream economists all cry, 'no one could have seen this coming?' Take your head out of the sand noobs this guy is just schooled you in how the world works.

[elnik32]

Obama and other politicians should watch this video so that at the very least they can see that someone who knows what he's talking about doesn't need a teleprompter or a speech writer. This is what knowledge looks like. But only fools believe that politicians know anything about economics. One exception of course, Ron Paul, but there are too many tools voting for fools like Bush, Obama, etc. for Ron Paul to get elected.

[NudIaug]

Pure genius

[TheBlitz1]

incredibly accurate

[deltapunk21]

Gov inteference in the marketplace the cause of all our trouble.

[wozzek22]

Brilliant! Timely and yet no one gave a f*uck. And now the puppet goverment is doing even worse by giving the same criminals 10, 100x more of our money...

[drinkofwater21]

this whole video needs to shown in front of congress.

its amazing to see everyone on cnbc and such saying NOW what he was saying over 3 years ago.

Congress needs to pass a law (because they don't have enough already) that says anyone who talks about the housing and economic crises, must before utter "I'm quoting Peter Schiff" then say what they need to say

[JurkoffJay]

Preach!  You white son of a bitch!

[dave997]

treasury bubble is next, probably during late 2010 or early 2011, then its game over

[Frankenpalin]

shorting 30 year T bills will be one of the most crowded trades in the next year

[kanechi100]

maybe that will be the best place to be next year but after that not. As there is a carry trade on short term treasuries a squeeze could happen and stocks going down could generate demand for dollars like in 2008 and the 30 yr could go from 4.5 to 2 or lower providing nice gains and it is liquid. after that though watch out.

[gaguy1967]

yes, it could be. Though a treasury bubble burst in 1994 and it didnt cause a recession, just a slow down in 1995. But we have so much more debt today than in 1994.

[Namit2007]

Just one word for this guy - Genius

[63ALDO]

i am in the brokerage business and i have to tell you that he had this fiqured out better than any one i knew. i knew it and know why now. he told you the why before it happened. peter schiff for president..not senate. forwars thinking is better than backward thinking

[zuperketaro]

CDOs, not CMOs Peter

[fahimh]

i love how peter drifts away from the podium as he speaks lol. if he keeps talking, he'll end up offstage.

[Chslosers]

I noticed this as well.. he also tends to sway when he is on CNBC

[richkid11111]

realtors and mortgage bankers just got a dose of reality. they made the right painful choice of inviting Peter Schiff in..

no wonder they can't invite him in after this, and after all equity evaporated!!!

hahahaha!

[Mediterraneanblue9]

Two words for you all: Moral hazard and Information asymmetry.

[kobe88124]

that's four words but yeah, you're right...

[14niki07]

how come no one was listening to this guy? It's one thing to be a cocky banker or investor, another thing to be smart. Amazingly we had very few smart people in investment.

[Mediterraneanblue9]

Because it would of killed demand and therefore a surplus of homes. When mortgage companies are pushing liar loans, do you think bankers want to listen to this guy. Forget about people. People making 13/hr with no money down wants that American Dream and they will do anything for it.

Both the Republicans and Democrats are to blame for this one also. epublicans turned a blind eye and the Democrats want their marginiized constiturmts to have owneship, so they can get r-elected.

[Mediterraneanblue9]

Here is a great example: My friend bought a house in 2002. He was making $13/hr installing carpet (of course remodeling your home during that time was big business). he put no money down and he had no money saved. He ended up getting a house for $212K and an ARM, but at the time I thought it was odd. Now I look back and think HOLY SHIT! ANd yes...he ended up foreclosing on the house 1.5 years later. He said he didn't lose any money, but his credit got a decient hit. Lesson learned.

[jaffijoe]

I've been listening to and watching Peter for about 4 years. He is a pretty loud guy and comes off cocky sometimes. But, he knows his stuff. He is well educated in the Austrian School of Economics, The Austrian Business Cycle, Credit and Fractional Reserve Banking, and of course the equities and commodities markets. He knows his stuff.

[TheScyy]

@jaffijoe He has every right to be cocky though, unlike these Keynesian economists who were laughing at him every day up till the housing market collapse. When you know your stuff and can make accurate predictions using the knowledge you have gained the right to act like you know what you are talking about.

[gaguy1967]

GREED

[alansilvestri]

I did and I stayed out of the housing BS and big mortgages,I am glad that I listed this guy.Thank you Peter

[garybsg]

please run for president Peter

[draggeddownthehole]

Well if Ron Paul dies for whatever reasons, he would make a good replacement.

[fluff125]

Hmm. I think Schiff is what we need right now. Ron Paul is good for all of the social reforms we need, Schiff is good for all the economic reforms we need. Although maybe we should elect Paul first because he's old and may die soon. Perhaps Paul president Schiff Vice president? Or the other way round?

[NoisemakerArrow]

Remember that Schiff was Paul's economic adviser during the campaign.

[libertyeconomics]

You have to clear both interest and inflation.

[splintercell99]

He states the facts so plainly i almost feel sorry for those who are being slapped up the side of the head with a big bag of truth.

[YllwNinja]

too bad we can't exchange the truth for hammers :D Big bag of hammers up side the head!

[Visfen]

That's what the Austrian school is about, I've been a proponent since I was 15. It's based on reason and rational and not ignorance and revisionism like Keynesian economics.

[pronginator]

'These liar loans you guys came up with' and a hush falls over the crows at 2:00 into it lol (on top of the fact its already quiet in there) By the way, Mr Schiff was NOT asked back in 2007. Poor saps- they still Ignore him.

[Sentinel4truth]

Pure genius. Peter Schiff is as wise as Solomon and bold as David.

[filabusta2]

This man is a prophet.

[quillendaniel]

Not to mention clear transparent logic; beautiful analogies and remorseless analytics......

[quillendaniel]

The section from 7:35 to 9:56 is brilliant.......this man is all charisma!

[nicoya31]

I love it when he tells them "one of these liars' loans that YOU GUYS CAME UP WITH". Priceless!!!

[12inchvertical]

Triple A!? Triple A - how can that be???

[deelove7003]

he's speaking crash proof

[deelove7003]

live within your means

[domerdame]

He does mention fractional lending in plenty of his videos but you have to understand its not put in those terms.

[ngonea]

Very interesting, but so far, he has not addressed the fact that the banks loan money they do not have and the Fed puts money into the economy they do not have by printing money and loaning it to congress, he fails to mention fractional lending practices?

see "Money as Debt" youtube

[blistex649]

He mentions it other videos in more recent times as a comment to all this Gov't action.

[gregtron111]

He doesn't really need to anyways because he does mention that inflation is a fear due to recent bailouts and this wouldn't really be rational if he weren't taking deposit money creation on the $700B and $800B into account. So in effect he implies it, but keep in mind he is speaking to an audience that may not understand or care about that sort of theory as well, especially when he appears on news agencies, in that case he's also doing marketing for his fund as well.

[trxtan1]

i don't think he needs to say it at THAT convention because he's talking to bankers and bankers SHOULD know fractional lending by heart. I f he uttered that train of thought, those bankers would feel like Schiff thinks they are little kids.

[Mediterraneanblue9]

that goes without saying.

[cospy77]

Hey, I am British and I think you ROCK! Thanks for the exposition. Will ignorant people like President Bush listen?

[ajnako12]

I never liked the tax cuts and I find it beyond aggravating when people still insist that he's been a good president.

[ab330]

World per capita debt..the Brits carry 3 times that of usa .. #1 Monaco: $550,947.32 per capita #2 Ireland: $338,761.47 per capita #3 Switzerland: $142,561.00 per capita #4 United Kingdom: $136,237.45 per capita #5 Netherlands: $114,600.47 per capita #6 Belgium: $101,325.74 per capita #7 Norway: $75,692.65 per capita #8 Denmark: $74,065.68 per capita #9 Austria: $72,477.53 per capita #10 Hong Kong: $67,746.72 per capita

[domerdame]

yes but this debt is largely to themselves or payed to increase their infrastructure. Ireland has one of the most robust economies in the world, people from south america, central and eastern Europe and Africa are emigrating there because they have jobs, which are a direct result of the investments made by the European Union in Ireland's unfrastructure. However, they now have the capacity to pay off their debt and then some.

[ngonea]

domerdame- how can an nation or a individual pay off their debt wirth debt? We have not had money since 1933 when the U.S. was put into bankruptcy receivership, we have no money ,we have

federal reserve notes, which is a promise to pay. That sytem operates worldwide

[Duckenheimer]

Never gonna give you up. Never gonna let you down. Never gonna turn around and hurt you.

[phil0sopher]

This guy is damn right.

[vicmac64]

Way ahead of his time - this man tells the truth..... The rest are scum.........

[LeftLiberalSoCal]

I went to the money show in Las Vegas in see Peter live in person. He was fantastic and had allot of courage. There was a live panel with Peter and these Wall Street Stock Brokers from NY. The brokers were all against him. These guys were wearing like, $9000.00 suits,gold watches, Armani shoes,really slick looking. And they were totally telling you what you want to hear. Car salesmen types. They were all laughing at Peter and telling the audience he was full of shit. I wonder who's laughing now?

[GonReis85]

@LeftLiberalSoCal I saw the same in the Business Today Conference, NY (2009). Great comment.

[vicmac64]

you can't get better or more honest or more patriotic than Peter Schiff. This man is a legend.

[ohio1998]

I love Peter Schiff! Even if he isn't right, I still love his philosophy! Hard work and savings always gets you ahead. Not spending like a retard.

[madhuradi]

let's get to some serious business...the evalation of GDP should be like the total net worthof a person[i.e earnings-liabilities]so adding food,coommodity consumption to asets is like telling someone became richer by eating.sadly that's how gdp is calculated all 12 trillion of consumer and corporate spending is added as an asset.but it is a liabilty.Its okay if yyou can afford all of that money if you had it in the first place.you loan money ,eat it,and say your asset increased..that's awful

[Kirok]

WHOAH!

Circa 2:20:

"...so they get one of those no-doc loans -- one of those `Liar's Loans' you guys came up with..."

THIS GUY ROCKS. I can't think of anybody else, except perhaps Ron Paul, who would have the dangling anatomy to take a justified swipe like that at his audience.

[1samothrace77]

alt A loans will be the next subprime but it will be worse

[Kirok]

True, that. This is going to SUCK.

[JiveDadson]

When he gave this talk, he was called a loon. Yet, almost everything he said has come to pass in two years. He was all giggles and chuckles then compared to now.

[lastnymleft]

Gotta give him his dues, and allow him his "I told you so!". He nailed it.

What else could he be right about? Supporting Ron Paul, perhaps?

[Tasadaru]

He actually still plugs Ron Paul in his radio shows.

[steelhorses2004]

Peter has incredible insight. I wonder what he'd invest in today?

[JiveDadson]

Gold and silver. I have little doubt that he's still short in the financials too.

[fedupx5900]

Gold and Silver for starters. It's in his book: Crashproof

[steelhorses2004]

I just started reading it. Nothing but the cold hard truth so far. Already preordered his next book.

[cristianvasquez88]

What is his next book? how do i pre order? I'm reading Crash proof right now

[steelhorses2004]

It's on amazon

[SolitonPL]

Great speech!

[vendor72]

This guy must be making soooo much money.

[Heraldeena]

vendor72, it's a pity your admiration goes in that direction.

[vendor72]

hmmm. You may be right Heraldeena but isan't that what it's all about? What brought you to this segment of Peter's speech? Love?

[Heraldeena]

Your reaction shows love of money, mine - admiration for intelligent people.

[Heraldeena]

Reply to vendor72:

Your reaction shows love of money, mine - admiration for intelligent people.

[vendor72]

intelligent people like stockbrokers who's job it is to invest money and make money! My reaction is based on the fact that he has called it right. If he has backed his judgement and shorted the cdo market then he should have done extremely well. His intelligence is based on the research he has worked hard at to gain an informed opinion. I don't think he has done it for just the fun of it. Do you?

[Heraldeena]

He certainly hasn't done all the research for fun but for money but I don't admire him for the money he has earned but for his intelligence. He just happens to benefit more in financial terms than other very intelligent people who did not choose to study economics.

[vendor72]

I admire Schiff for his intelligence aswell particularly his understanding of human nature, bubbles and manias and how that translates to economic realities we see today.

[winkmastag]

I remember reading both Schiff's material along with other like-minded folks between 2003-2005 and the investment community was laughing at them! In fact there is a great you-tube video on the predictions for the 2007 real estate market where peter is debating a wall-street radio talk show host bonehead and a harley davidson jerry curl looking redneck from pennsylvania in which these guys were making fun of him. Now if the same interview was done, Peter would rip them a new one!! Way to go P.S.

[TheCZMan]

"In fact there is a great you-tube video on the predictions for the 2007 real estate market where peter is debating a wall-street radio talk show host bonehead and a harley davidson jerry curl looking redneck from pennsylvania"

What a seller! I must find this video now.

[ecollado72]

"This is a bad one. The worst is yet to come."

"The difference between an optimist and a pessimist is that a pessimist is a realist. And like Peter,I'm just being realistic."

[newgtguy]

And they won't stop until the US Dollar is worthless. Ummm, oh wait, didn't that happen in 1971?

Schiff called this one. Hyperinflation here we come.

[ronheri]

This is why Peter Schiff advised Ron Paul. He's truthful and knows what he's talking about. Thats a rare combination on Wall Street and in Washington.