Peter Schiff Warns Government Policies Have Created a Massive Bubble in Housing Market, Banks Risk Severe Losses When Prices Eventually Crash
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Peter Schiff says government policies like low interest rates and mortgage guarantees have artificially inflated housing prices, creating a "massive bubble"
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He argues that without government intervention, prices would be lower and more affordable, even if financing costs were higher
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Schiff outlines how buyers today rely on low down payments and low rates rather than savings, taking on more debt
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He analyzes past real estate trends, including higher rates but lower prices in the 1980s and the 2008 housing crash
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Schiff warns that banks now have even more exposure through mortgages and will be hit harder than in 2008 when the bubble bursts