The Home Front

Bailouts Won’t Work, Peter Schiff Says

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April 1, 2008 RSS Feed Print
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The L.A. Times , smack in the epicenter of the housing crisis, has published another opinion article opposing a government bailout of the housing market—this one by Peter Schiff, president of Euro Pacific Capital and a financial commentator:

At current levels, the average American still can't afford the average house. Despite the creativity of its new policies, Washington can't alter that math. The only mechanism to restore balance and get the credit flowing is for prices to fall steeply to a true market level, and for losses (for consumers and corporations) to be recognized and absorbed.

The full article is here.

Or, via L.A. Land post, here.

Tags:
housing,
housing market,
real estate

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I'm a real estate broker in Manhattan. This is where you get to experience first-hand greed, ego and flagrant spending on homes. Sellers here are not so fast to move with the economic news. Most are still trying to sell their apartments at the overinflated prices of 3 years ago. I'm trying to spread the news that inflated prices are over but they arent buying it. Instead there are thousands of apartments doing open houses every weekend and nothing is moving. I'm a member of REBNY. I would love for you to do a special talk to the real estate people of Manhattan and give them the truth. The sellers dont believe that their apartments will ever go down and the agents think this is just a temporary thing till Obama takes office. I have a buyer that wants to buy a place but wont pay for the mistake of a seller when they bought at the highest price in history. My buyer is offering a price equal to that of the years before it went up. He's not wrong. Only until then when sellers realize they made a mistake and reduce radically even at a loss, then real estate wont get back on track again. So it would be great for you to talk.

steve hirsch of NY 9:38AM November 18, 2008

If current trends continue especially with the cost of Energy , nothing is going to matter to the average American EXCEPT to survive DAY TO DAY

of NY 7:31PM June 03, 2008

1929 again means deflation and all things will go down, turn everything you own into CASH. Cash will be KING. When the very big garage sale begins use your cash to buy everything at 20 cents on the dollar.

Jimmy the Snake 10:35AM June 03, 2008

The Home Front

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