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The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Marke


By Bubbabear   Follow   Sat, 9 Mar 2013, 8:58am PST   543 views   4 comments
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http://www.forbes.com/sites/afontevecchia/2013/03/05/peter-schiff-and-the-coming-housing-collapse-the-fed-instead-of-lehman-owns-the-mortgage-market/

Peter Schiff, the eternal provocateur, suggests the Feds extraordinary support of bond and housing markets will lead to a market crash as interest rates rise, leaving banks, mortgage originators, and lenders stuck with homes and low yielding loans as the economy slows, exacerbating the decline and throwing the economy into a deeper crisis.

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HEY YOU   Sat, 9 Mar 2013, 9:43am PST   Share   Quote   Permalink   Like   Dislike     Comment 1

"Rising rates will make it more difficult for people to qualify for mortgages and get homes, while a cooling economy, as a consequence of tighter monetary conditions, will limit renters’ ability to pay. As the housing market stalls, the financial system will begin to seize up, resulting in a stock market collapse and a deeper recession than in 2008."

I don't doubt that this is possible.
Where can I purchase discount tickets for this ride. With my luck ,it's already sold out.

futuresmc   Sat, 9 Mar 2013, 3:05pm PST   Share   Quote   Permalink   Like   Dislike     Comment 2

John Bailo says

This is what *should* happen. We've got too many entrenched players, trying to stuff people back under their pyramids so they can get those guaranteed returns like back in the old days. At the same time we've got growth sectors that are starving for capital that could be growing markets, adding jobs and building revenue!

Not to mention these entrenched players control the computer systems that tell everyone what is happening in the markets, so there is no way to determine value. It's similar to what Stalin said "It's not the people who vote that count, but the people who count the votes".

lostand confused   Sun, 10 Mar 2013, 1:12am PST   Share   Quote   Permalink   Like   Dislike     Comment 3

Yeah, but the market is screwed up with the actions of the FED, that the word fundamentals has been retired-especially in high priced states.

Up in the bay area, people are going nuts-I know people willing to pay 400k+ for houses in frigging Tracy. Ever tried that commute on 580 on a weekeday?

bmwman91   Sun, 10 Mar 2013, 1:24am PST   Share   Quote   Permalink   Like   Dislike     Comment 4

:lostand confused says

Yeah, but the market is screwed up with the actions of the FED, that the word fundamentals has been retired-especially in high priced states.

Up in the bay area, people are going nuts-I know people willing to pay 400k+ for houses in frigging Tracy. Ever tried that commute on 580 on a weekeday?

People want the good times back. 2006 was just too much fun!

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