Peter Schiff on the Housing Market
October 26, 2009
This is an update from Peter Schiff, CEO of Euro Pacific Capital commenting on the U.S housing market. His points regarding the government’s incentive programs are well taken- the tax credit is a crutch propping up home sales right now. Similar to the Cash for Clunkers program that helped out the automaker’s sales figures for a couple or months, the $8000 tax credit is distorting the actual market. I agree with Schiff and predict that U.S home sales figures and valuations will continue to slide following the end of the tax credit. Unfortunately, Congress looks poised to renew it in order to forestall the inevitable cratering in U.S. residential real estate. Too bad for us.
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