Peter Schiff: Housing still has at least 20% on downside to go.

Business Insider ^ | December 30, 2010 | Gregory White

[SeeSac]

Prices are going to going down across the board. As they are forced to raise interest rates and local taxes skyrocket, the value of the home will go lower and lower and be seen as more an albatross than anything else.

And what did you mean when you posted "Head in the sand"? Did you mean some people or were you directing that to me?

[familyop]

"The Rocky Mtn states, for instance, continue to have a growing population that puts an upward demand on housing units."

In Colorado, the demand for rentals is way up, while the demand for purchases is way down. Foreclosures are high, and there's much suspicion that devaluations aren't being done honestly (local governments trying to keep property taxes up).

[Huebolt]

He overestimate the intelligence of Chinese politicians imho.

The Chinese still have most of their population living on the farm. You can't fail if you are a rice farmer. You can't fall any lower.

In the US, most people live in huge cities and do little or nothing directly related to the production of a product of any kind.

They (we) have a LONG WAY TO FALL...

Parasites are the first to die when the host falls seriously ill. Passive income parasites are no different.

there are makers, takers, and fakers. The US seems a country of fakers run by a mob of takers.

[EVO X]

Ha ha ha ha - no kidding - thisis why people are fleeing N.Y. and myself included as soon as I can.

Over 1.5 million fled between 2000 and 2008. Can't find the figures for the last 2 years..

[SeeSac]

Has Schiff ever been wrong?

Ask his clients. The dude is always apologizing for losing their money.

[surfer]

Average median home price historically adjusted for inflation is 100k...we are still about 170-180k average...has to drop below 100k before rising to equalize at the historical average...watching this metric is key it will be the best indicator on when to buy!

There will be huge opportunities for those that are patient and watch the market closely.

[SeeSac]

He has been amazingly accurate...but there will be some here who think they know better.

Like when he predicted a five year bear market in 2002? Like when he apologized to his clients in 2008 for 'accounts that suffered badly'?

[GlockThe Vote]

General media “consensus”.

[GlockThe Vote]

Great post.

[Las Vegas Ron]

I don’t feed trolls.

[blam]

"I have been telling my GF that prices are still 20 - 40% too high based on historical criteria, and she used to yell at me for not buying, but no longer."

I thought of this article when Iread your comment:

My Friends And I Are THRILLED About Falling Housing Prices

[GlockThe Vote]

Problem is that my small biz is way down too w bama’s economy so falling prices will only be good if my income recovers.

[blam]

"Rerun the numbers as many times as you like and you will discover that default is inevitable."

I agree. There's no peaceful way back from here.

Krugman agrees:

Krugman: We're Going To Have To Default On Our Debt One Way Or Another

[MrEdd]

It isn’t like everyone who ever studied the Austrian economists didn’t warn you all what was coming and why.

I talked my father inlaw out of the real estate business in 2002.

[blam]

"Based on the experience of other countries who have undergone similar economic circumstances, housing prices will fall 90 percent or more in real terms when we begin to experience more of the effects of serious inflation / hyperinflation.

Now Get Ready For A 90% Collapse In Canadian Real Estate

[GlockThe Vote]

We have had a ponzi-madoff economy for too long now.

[Lazlo in PA]

You talked him out in ‘02? Boy, family functions must suck. You talked him out at the beginning of one of the biggest booms ever in real estate since the late 40’s early 50’s. If

I were him I would be an angry camper. All that lost wealth.

[blam]

"He overestimate the intelligence of Chinese politicians imho. I don’t see them any different to US politicians. Both of them think devaluing currency is the way of prosperity. Peter constantly think that Chinese politicians will wake up one day and realize their error. I don’t see that happening. I see hyperinflation happening in China before the US.

Chinese Pro-Democracy Activist Explains How Inflation Will Cause The Collapse Of The Regime

"Everyone recognizes the economic dangers of inflation in China."

But the black swan in the room is regime change.

[Las Vegas Ron]

I were him I would be an angry camper. All that lost wealth.

I have a buddy here in Vegas that I rent a house from.

He bought it in 1999 for cash, it is now worth 40-50k less than what he paid for it.

You might want to re think your post.....just sayin.

Now if you sold at the right time, that would be a whole different scenario.

[paul51]

Bump for when I need a dose of reality