As Economy Heats Up, Home Sales Hit 3 Year High

[TakeAStepBack]

The day of reckoning will come when the Fed starts to tighten, according to Schiff. “It is amazing Bernanke can admit he has no exit strategy,” he explained, noting the Fed will monetize some of its Treasury and mortgage holdings, but will have to sell a lot of both to normalize its monetary stance. Bernanke has made it clear they will telegraph the move to the market, but Schiff believes telling others they will sell “is the worst thing they can do [as] everyone will try to front-run the Fed.”
That is when “public selling will overwhelm the Fed,” Schiff says as “the big buyers are only there because the Fed is.” While the central bank is buying a big chunk of all debt issued by the Treasury, it holds only about 15% of debt outstanding Bernanke explained, rendering it unable to stop a run on Treasuries, which would lead to interest rates rising very quickly.
With bond prices falling and rates surging, banks will be left with depreciating assets (Treasuries) and stuck with low yielding long-term loans. As the “rug is pulled from under the banks,” the housing market will collapse as well, Schiff believes. The housing market will also breakdown.

Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market - Forbes

 

[Mr. Peepers]

A friend of mine, who is a real estate agent in GA (not Atlanta) said that the market is up 30% for her from two years ago. Just sayin'.

 

[TakeAStepBack]

And should we play Tosh game of "guess what happens next"?

 

[g5000]

In November 2008, the Fed started buying $600 billion in MBS. In less than six months, this aggressive purchasing program had more than doubled the central bank's holdings of bank debt, MBS, and Treasury notes.

What is the Federal Reserve Quantitative Easing

That was QE ONE.


As I said, the Fed has been pumping those billions into the economy for YEARS.

They have not done anything new to explain the new development in the real estate market.

 

[TakeAStepBack]

Dude, you're cluesless about this. You're so right G5000! How could we be so short sighted.

 

[g5000]

And should we play Tosh game of "guess what happens next"?

Way ahead of you: The Fed's Bond Bubble Doomsday Machine

 

[Oddball]

Good grief, Charlie Brown...It's like talking to someone who believes that pro rasslin' is for real.

 

[drivebymedia]

Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market - Forbes

Read the rest at the above link.

You mean the Lenders control the housing market?

OMG nooooooooo ....

 

[Truthmatters]

Peter Schiff - Wikipedia, the free encyclopedia


Political career

Schiff was an economic adviser to Ron Paul's unsuccessful 2008 presidential campaign. In support of Paul's economic revitalization plan, Schiff said: "We need a plan that stimulates savings and production, not more of the reckless borrowing and consumption that got us into this mess in the first place. Ron Paul's plan is the only one that amounts to a step in the right direction. If you want meaningful change—for the better that is—Ron Paul is the only candidate capable of delivering it."[58]

In 2008, Schiff also endorsed Murray Sabrin for the U.S. Senate seat in New Jersey.[59]

In 2008, Schiff said that he supported the reduction of government economic regulation, and was concerned that President Obama's administration might increase such regulation.[60] Schiff says that the economic crisis of the late-2000s provides an opportunity to transition from borrowing and spending, to saving and producing. He is critical of the U.S. government's efforts to "ease the pain" with economic stimulus packages and bailouts. According to Schiff, the U.S. government's approach of replacing "legitimate savings with a printing press" could result in hyperinflation

 

[TakeAStepBack]

Good grief, Charlie Brown...It's like talking to someone who believes that pro rasslin' is for real.

It's actually sad. But you can not fix it. so here we are.

 

[TakeAStepBack]

Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market - Forbes

Read the rest at the above link.

You mean the Lenders control the housing market?

OMG nooooooooo ....

Another extremely educated forum member.

 

[Truthmatters]

your clown is a wealthy Austrian short bus school guy

 

[Oddball]

Peter Schiff - Wikipedia, the free encyclopedia


Political career

Schiff was an economic adviser to Ron Paul's unsuccessful 2008 presidential campaign. In support of Paul's economic revitalization plan, Schiff said: "We need a plan that stimulates savings and production, not more of the reckless borrowing and consumption that got us into this mess in the first place. Ron Paul's plan is the only one that amounts to a step in the right direction. If you want meaningful change—for the better that is—Ron Paul is the only candidate capable of delivering it."[58]

In 2008, Schiff also endorsed Murray Sabrin for the U.S. Senate seat in New Jersey.[59]

In 2008, Schiff said that he supported the reduction of government economic regulation, and was concerned that President Obama's administration might increase such regulation.[60] Schiff says that the economic crisis of the late-2000s provides an opportunity to transition from borrowing and spending, to saving and producing. He is critical of the U.S. government's efforts to "ease the pain" with economic stimulus packages and bailouts. According to Schiff, the U.S. government's approach of replacing "legitimate savings with a printing press" could result in hyperinflation

 

[g5000]

Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market - Forbes

Schiff incredibly agrees with what has become a mainstream opinion: the Fed is behind this rally, both in stocks and bonds, and even in real estate markets. Yet Schiff differs in that, while most believe the Fed-induced rally has “training wheels” that can later come off, the Fed’s support “are the only wheels” keeping the market going, and removing them will spark a crash.

Pointing to housing markets, Schiff notes that “we are building more homes than we can afford,” as hedge funds and speculators gobble up hundreds of thousands of properties being cranked out by the homebuilders. Indeed, hedge fund manager Deepak Narula of Metacapital made $125 million last year buying up mortgages, delivering net returns north of 40% while the S&P 500 squeaked out about 14%; several hedge funds followed suit. The foreclosure process is stalled in several “judicial” states while banks are still sitting on massive inventories of housing. Major banks and mortgage originators haven’t gotten out of the mess they caused in the financial crisis: Bank of America, Wells Fargo, JPMorgan Chase, and Citigroup are still in the process of settling a nearly $20 billion tab with homeowners across 49 states.

Read the rest at the above link.

Schiff:

Investors can buy protection against this collapse, Schiff says, by stocking up on gold. The yellow metal is down nearly 7% in 2013, but Schiff attributes that to misplaced optimism. “People are as dumb as they’ve always been [but] the sentiment is wrong, they should be buying gold.”

The people who invested with him and followed this exact same advice he gave after the crash suffered close to 50 percent losses the following year.

Schiff is a stopped clock that has been right...once a day.

 

[Truthmatters]

facts mean nothing to the right

 

[g5000]

Peter Schiff And The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market - Forbes

Read the rest at the above link.

You mean the Lenders control the housing market?

OMG nooooooooo ....

Another extremely educated forum member.

That's funny coming from someone who said the Fed has been buying mortgages only since late last year.

 

[Truthmatters]

this economy would be fully recovered if the right had NOT been only interested is going after Obama instead of helping the recovery

 

[TakeAStepBack]

Oh, a TM and G5000 alliance! You go girls!

I could really give a fuck what anyone thinks. These guys were right the last time and they are right this time because nothign has changed. it's all artificially induced booming by the fed. This is actually a mainstream economic position right now, but TM and G know it all, man. Theya re fucking GENIUS!!!!





Everything is great! We're in full recovery mode now!!

 

[TakeAStepBack]

You mean the Lenders control the housing market?

OMG nooooooooo ....

Another extremely educated forum member.

That's funny coming from someone who said the Fed has been buying mortgages only since late last year.

I said nothing of the sort, Corky. But I can see you're absolutely distraught over being correct, so you're so right!!!

I'm bored. Have fun with the next real estate, bond market and treasury crash.

 

[Truthmatters]

Oh, a TM and G5000 alliance! You go girls!

I could really give a fuck what anyone thinks. These guys were right the last time and they are right this time because nothign has changed. it's all artificially induced booming by the fed. This is actually a mainstream economic position right now, but TM and G know it all, man. Theya re fucking GENIUS!!!!





Everything is great! We're in full recovery mode now!!

Then why are your HEROS the Big Money snapping up as many homes as they cant buy?