Peter Schiff August/2005 - CNBC (discussing real estate)

In this video Peter says that the housing market is a weak foundation for the economy and that it isn't going to last much longer. David Sowerby (Loomis Sayles & Co) disagrees and says that the housing market is only in the 7th inning and that it's nowhere near the Internet bubble. David then says that real estate is savings. Peter says that homes are not savings and that home prices can fall a lot faster than savings, "and in fact, they will."

David says that the consumer will continue to do well. Peter disagrees and says that not only is the consumer in great trouble, but the entire U.S. economy.

Category:

News & Politics

Tags:

• Peter
• Schiff
• housing
• bubble
• real
• estate
• interest
• rates
• recession
• economic
• collapse

[tyronebiggums3]

David Sowerby of MICHIGAN!!

"I wouldn't say it's anywhere near the internet bubble"

EPIC FAIL!!!

[PeterSchiffVideos]

I googled that guy and can't find him since 2005.  Wonder if he got canned.

[tyronebiggums3]

I did a Yahoo search on David Sowerby Loomis & Sayles.  You can find MSNBC videos of Sowerby from just days/weeks ago. And there are videos of Loomis & Sayles buying Lehman bonds/debt, stating Lehman is in very good shape. EPIC FAIL Part 2. LOL

Exactly how is Loomis & Sayles still in business??

[PeterSchiffVideos]

I'm gonna open an account with those guys.

[hawash78]

This guy (Peter) should be a chief adviser for the president or something.

[Airmanf7]

I love how reserved Peter is in 2005. Funny to look back.

[TheBlitz1]

yeah david what about that

what about that david

[macktasticjoshflava]

Did this guy seriously try to say that Housing was savings? What an idiot.

[spectrum2000now]

Real estate bubble is a part of the past which still affecting our economy today. But it is never too late for us to recover from the past crisis.

[nsolcis]

you see the stocks the other guy's naming?

coach, canival cruise, cox cable, ect.... and this is what the economy was based on? sounds like a party, not and economy!

[libertyeconomics]

I don't know where I am wrong. I agree with what Peter said. Equity PRICES are not indicators of savings. The HOUSE ITSELF is the form of savings. At artificially low interest rates, everybody paid the wrong prices for homes.

[alyr315]

Are you that dumb? This is a video from 2005 and he was right on everything he was saying. The housing bubble has burst and yet worst to come. It's all a fictious economy. He's not a kook, he

was right.

[aviomaster]

libertyeconomics (- The house itself is the savings, - You are not aware that people borrowed money , when houses were overpriced with easy money from the banks , and Mortgage lenders, It is destruction of savings ,.,,, You make 4000$ a month and pay 3200$ in mortgage , is this called savings ,,,

[libertyeconomics]

What Peter says that is salient here is that home "equity" is NOT savings. The house itself is the savings, not the prices, which are distorted through the process of inflation. Same goes with silver and gold bullion. If you have an ounce of gold, your savings is not $995, i.e., the present spot price. Your savings is one ounce of gold.

[libertyeconomics]

But Peter is a "nut" and a "kook." Anybody who speaks truth that runs afoul of prevailing orthodoxy is a "kook."