tag:blogger.com,1999:blog-26542777.post975771619349641285..comments2023-10-26T01:59:40.483-07:00Comments on The Dividist Papers: A Happy New Year message from Peter Schiff: The value of your house is still 20% too high.mwhttp://www.blogger.com/profile/11181222537529037359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26542777.post-68286859328694623082011-01-02T16:17:42.087-08:002011-01-02T16:17:42.087-08:00Agreed. Although I sure wouldn't mind seeing S...Agreed. Although I sure wouldn't mind seeing Schiff get this one wrong. <br /><br />Friday CNBC had Ron Insana on, specifically to refute Schiff. He basically is saying there is so much pent-up demand, and prices are so low, and the economy improving enough that the housing market will stabilize here. Video <a href="http://www.cnbc.com/id/15840232/?video=1716771207&play=1" rel="nofollow">linked here</a>. <br /><br />Basically I think Insana may be right on a shorter term call (1 year?), with an economy feeling pretty good after the latest massive stimulus and QEII heroin injections. But sooner or later, the needle has to come out of the arm. <br /><br />It won't feel so good then.mwhttps://www.blogger.com/profile/11181222537529037359noreply@blogger.comtag:blogger.com,1999:blog-26542777.post-6965799801693551802010-12-31T09:18:50.223-08:002010-12-31T09:18:50.223-08:00Schiff is right, in essence if not neccessarily in...Schiff is right, in essence if not neccessarily in scale. (I don't know how to judge the exact scale of the future pain -- no one does.)<br /><br />As I've said all along, punting the problem down the road doesn't resolve the problem, and much of what TARP and gov't intervention did was just punt the resolution of those bad assets down the road, accompanied with major capital infusions (from the public treasury!) in an attempt to keep the bubble partially inflated while the bulge of bad assets works its way through the pipeline, in the hope that the pain can be spread out and absorbed more easily.<br /><br />We've been here before (Resolution Trust Corp, anyone?) but despite having a successful model available for resolving things, the admin and Congress chose to go a different direction, and it'll end up costing and hurting us more than directly addressing the problem would have.Tullyhttps://www.blogger.com/profile/03842067230152580405noreply@blogger.com