By the end of 2006, a lot of people within the mortgage industry were predicting this. That said, it was accurate.
In some ways, this was very easily predictable because the real estate boom had all the hallmarks of a speculative market. This ended like all speculative markets, badly.
He is making a larger point. The whole economy was a deck of cards based on borrowing, consuption, and imports, lawyers and other self service..) A nation of stock brokers, real estate agents, lawyers, and pizza delivery men all funded by borrowing and the resulting inflation (boom).
The future? Inflation and devaluing of dollar and price controls?
Peter Schiff on Wika : In an August 2006 interview Schiff generated much controversy when he repeated his long-held investment thesis: “The United States economy is like the Titanic and I am here with the lifeboat trying to get people to leave the ship ...I see a real financial crisis coming for the United States.” On May 16, 2006 in debate on Fox News, Schiff accurately had forecast that the U.S. housing market was a bubble that would soon come to bust.[6] On December 13, 2007 in a Bloomberg interview on the show Open Exchange, Schiff further added that he felt that the crisis would extend to the credit card lending industry.[7] Following this observation, it was soon reported on December 23, 2007 by the Associated Press that “The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP... At the same time, defaults — when lenders essentially give up hope of ever being repaid and write off the debt — rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission.”[8]Schiff also references the role of the US consumer in the world, saying that the US consumer thinks he’s doing the world a favor by consuming what the rest of the world produces. He is quick to point-out that this relationship will come to an end, in his view, much sooner than people imagine, and with negative consequences for the US. Schiff has been quoted as saying: “Consumption is its own reward for Production” — meaning that without production, the US cannot indefinitely sustain its ongoing consumption. Schiff, and other adherents of Austrian economics, promote savings and production as “the engine of economic growth — not consumption.”[citation Schiff points to the low savings rates of the United States as its worst malady, citing the transformation from being the world’s largest creditor nation in the ‘70s to the largest debtor nation at the turn of 2000. His extremely bearish views on the U.S. Dollar, the United States stock market, bond market, and the United States economy have earned him the nickname “Dr. Doom.” [3]He was an economic adviser for the Ron Paul campaign in the 2008 Republican Party primaries. Schiff also hosts a live Internet/shortwave radio show called “Wall Street Unspun.”[4]His father is tax protester Irwin Schiff.
http://en.wikipedia.org/wiki/Peter_Schiff
He is making a larger point. The whole economy was a deck of cards based on borrowing, consuption, and imports, lawyers and other self service..) A nation of stock brokers, real estate agents, lawyers, and pizza delivery men all funded by borrowing and the resulting inflation (boom).
The future? Inflation and devaluing of dollar and price controls?
Peter Schiff on Wika : In an August 2006 interview Schiff generated much controversy when he repeated his long-held investment thesis: “The United States economy is like the Titanic and I am here with the lifeboat trying to get people to leave the ship ...I see a real financial crisis coming for the United States.” On May 16, 2006 in debate on Fox News, Schiff accurately had forecast that the U.S. housing market was a bubble that would soon come to bust.[6] On December 13, 2007 in a Bloomberg interview on the show Open Exchange, Schiff further added that he felt that the crisis would extend to the credit card lending industry.[7] Following this observation, it was soon reported on December 23, 2007 by the Associated Press that “The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP... At the same time, defaults — when lenders essentially give up hope of ever being repaid and write off the debt — rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission.”[8]Schiff also references the role of the US consumer in the world, saying that the US consumer thinks he’s doing the world a favor by consuming what the rest of the world produces. He is quick to point-out that this relationship will come to an end, in his view, much sooner than people imagine, and with negative consequences for the US. Schiff has been quoted as saying: “Consumption is its own reward for Production” — meaning that without production, the US cannot indefinitely sustain its ongoing consumption. Schiff, and other adherents of Austrian economics, promote savings and production as “the engine of economic growth — not consumption.”[citation Schiff points to the low savings rates of the United States as its worst malady, citing the transformation from being the world’s largest creditor nation in the ‘70s to the largest debtor nation at the turn of 2000. His extremely bearish views on the U.S. Dollar, the United States stock market, bond market, and the United States economy have earned him the nickname “Dr. Doom.” [3]He was an economic adviser for the Ron Paul campaign in the 2008 Republican Party primaries. Schiff also hosts a live Internet/shortwave radio show called “Wall Street Unspun.”[4]His father is tax protester Irwin Schiff.
http://en.wikipedia.org/wiki/Peter_Schiff