July 28, 2008

HousingPANIC Exclusive - Five Questions with Peter Schiff


Here you go HP'ers - some great insights from The Man Himself, Peter Schiff, who was kind enough to do Five Questions with us today.

Join me if you will in thanking him for his time, and his spot-on advice these past few years. Mike Norman and Tom Adkins must hate this guy.
________________

HP: Assets including stocks, commodities and real estate are all deflating, while inflation is roaring. What's the best way to protect your wealth in this environment?

Schiff: Stay out of the deflating assets, which include real estate, most U.S. stocks, and all U.S. dollar denominated bonds and other debt instruments. Invest in foreign currencies, foreign stocks, precious metals, and commodities. Commodities are not deflating bubbles and recent declines merely represent pull backs in bull markets that should be bought.

HP: Are you surprised that Angelo Mozilo and Michael Perry haven't been arrested yet?

Schiff: No, and I am not sure that their actions will be considered criminal. The real criminals are in government and the Fed. I would like to see a few of them arrested, but I won’t hold my breath.

HP: Obama or McCain, or does it not matter?

Schiff: I do not support either candidate, but have mixed feelings about who I would prefer, thought I will vote for neither. McCain would appear to be the lesser of the two evils, but given how bad the economy will be during the next presidential term, it might be better to have Obama win as he and his big government philosophy will get the blame. That might set the stage for a Ron Paul Republican to take the White House in 2012 and bring about change for the better.

HP: Is the recent housing gambler bailout just the beginning of socializing this crash?

Schiff: Believe it or not the damage from the housing “bailout” will exceed the damage from the bubble itself. It’s typical for the government to first create a problem and then exacerbate it though misguided solutions.

HP: You still rent we hear. Any thought of buying yet? What's your signal to buy?

Schiff: Not a one. In fact, with more and more rentals coming on the market, there has never been a better time to be a renter. Government “bailouts” may slow down the pace by which real estate prices fall but ultimately lead to an even bigger decline. We are still closer to the top of the real estate market then the bottom. Patience will be rewarded, especially if none of your purchase money is saved in dollars.

58 comments:

Anonymous said...

Gold to the moon!

Anonymous said...

Thank you, Peter.

And #6. How much money do I need to have for you to manage it on my behalf?

Anonymous said...

What a great guy

I wish I would have listened sooner!

Anonymous said...

HP: Are you surprised that Angelo Mozilo and Michael Perry haven't been arrested yet?

Schiff: No, and I am not sure that their actions will be considered criminal.....

________________________________
Translation: Rich people in America are above the law.

Anonymous said...

Thanks Peter for all you've done. You're the best!

And Keith, thanks to you for getting Peter to contribute to HP!

Anonymous said...

Schiff: Stay out of the deflating assets, which include real estate, most U.S. stocks, and all U.S. dollar denominated bonds and other debt instruments. Invest in foreign currencies, foreign stocks, precious metals, and commodities. Commodities are not deflating bubbles and recent declines merely represent pull backs in bull markets that should be bought.

_______

EXACTLY what I've been saying all along...NOW will you listen?

Also, Schiff appears to feel Mozilo will walk free...I think the same.

theloknesmonster said...

"there has never been a better time to be a renter"

lol...a new twist on an old realtor line of crap.

Anonymous said...

To anonymous who posted at 5:38 PM:

Peter Schiff has a minimum of $500,000 for him to manage your account personally. Otherwise, there is NO minimum to invest with EuroPacific. I was very confused about this when I first contemplated investing some of my assets with them. Finally got it straightened out and I am glad that I did.

Mark in Philly said...

Schiff: Stay out of the deflating assets, which include real estate, most U.S. stocks, and all U.S. dollar denominated bonds and other debt instruments. Invest in foreign currencies, foreign stocks, precious metals, and commodities. Commodities are not deflating bubbles and recent declines merely represent pull backs in bull markets that should be bought.


Just a note. Foreign stock markets have declined more than the US market.

There is a fight going on between inflation and deflation. If deflation wins, all commodities will suffer greatly...

peter s. said...

Thanks for your insights hp'ers.I am going to be an even richer man when this is all said and done.

Anonymous said...

Thank god you're back Keith.

J.

bitterrenter said...

Yep, another ignorant jerk who thinks the republican is the better candidate.

I can't wait to see you republicans living in tents.

Anonymous said...

I really love Schiff's insight, I read his book, and am generally in agreement with him on a lot of things except for him being conservative (which is only natural, since he's wealthy, white, and a business executive.)

But I REALLY loved the way he referred to the recent Jim Bunning vs Hank Paulson exhange: "Congress Taps Paulson's Helmet"

LOL!!! Look for this recent article of his on 321gold.com -- and then keep checking back there for anything else he writes in the future.

Anonymous said...

Funny how the corrupt MSM never gives air time to Schiff. Only Faux does. Yep, the same corrupt MSM that's shoving Hussein Obama down your throats.

Anonymous said...

Can we have Jim Rogers next?

Anonymous said...

"Patience will be rewarded, especially if none of your purchase money is saved in dollars."


Translation: If you live long enough, you might just come out ahead on this deal.

Devestment said...

Thank you Mr. Schiff, you sir are a scholar and a gentleman.
Respectfully,
Devestment

Lady Di said...

Love him. Is he available? (not for me. I'm married, but for my sister)

Read his book; saw him speak.

Thanks for helping me see the light and weather this storm.

Knowledge is power.

bobby jones said...

"Translation: Rich people in America are above the law."

Bush once said that medicare was meant to limit choices not to expand them. In a similar light, most law seem aimed at keeping people fussing over small, dumb details.

i.e. Pollution isn't a crime but stealing a pack of gum is.

I also remember Ron Paul's observation that "prosecuting white collar crime" isn't on our country's radar so, obviously, there's bias in our justice system.

the most reasonable explanation to me is: "if we arrest a poor black guy for stealing gum, that's ok; but, if we arrest a rich doctor for the same crime, society would lose capitalization.

michael said...

what's this jackass up to now?

http://biz.yahoo.com/rb/080728/usa_financial_bonds.html

ProblemWithCaring said...

Yea, commodities are no bubble, Peter...but you appear everywhere shilling for gold futures, talking down the dollar and the Fed as if there is "another way" in American investments - besides its de facto Wild Wild West-like environment of gambling and speculation.

Please. There ain't.

The talk radio ads singing about the saftey of gold investments are as unseemly and ubiquitous as those dancin' silhouettes all over the internet during the lending boom.

Schiff as the next Mozillo? Do we want to know who is the lesser of those 2 evils?

corvinus said...

I'd like to see Schiff in action again, soon.

Mark in San Diego said...

Thanks for the advice! Agree, the bailout will be a disaster and cost the taxpayer billions.

The IMF seems to agree on housing prices - that is what really spooked the market today.

Anonymous said...

I see he is not a socialist and doesn't like Obsama.

happyrenter said...

@Keith

Are you willing now to say that voting for St. Barry would be worse than for Johnny Boy? Your patron saint even said so.

Anonymous said...

the International Monetary Fund warned Monday that "a bottom for the housing market is not visible"

american consumer said...

his firm, euro pacific, specializes in international securities. i think his answers are slightly biased. why is he even US-based?

Anonymous said...

Housing bill didn't save Wall St today, boo hoo.

My prediction - Election coming - GOP and all other incumbents need a miracle, gas prices mysteriously plummet to 3.25 to 3.40 range.

chslaxcoach said...

I love this guy. His interviews on Fox Business news are funnier than most stand-up routines. If you haven't read his book "Crash Proof, " I highly recommend it. It will give you some great material for cocktail party conversations.

Have any of you HPers invested with his company? I believe in his investment philosophy and I even spoke to one of their counselors.

I'm just trying to figure out if the fees they charge are really worth it. They claim that because you are buying directly on foreign exchanges instead of OTC pink sheets, you come out ahead, but I'm not sure. This is a little new to me.

wc said...

Obama and big government???? Republicans may claim to want to minimize the government but the Bush administration spent way more than Clinton. Are we to be okay with the Republican philosophy that it's okay to socialize the bailout giving handouts to corporations and the likes of Bear Stearns but not help a single mother whose baby-daddy stepped out on her? But I appreciate Peter's comments. I usually agree with him except I don't believe McCain will be the lesser of the 2 evils. For middle class people like me - I believe Obama will help people like me more while McCain will just continue to the skew to the top 10% of earners.

Anonymous said...

Thank you for your comments. We are still looking to buy a home, but are in no rush to dive into the market. All of your predictions have been right on, so we will continue to hold out until the deal seems to swing in our favor.

Frank@Scottsdale-Sucks.com said...

McCain would appear to be the lesser of the two evils, but given how bad the economy will be during the next presidential term, it might be better to have Obama win as he and his big government philosophy will get the blame. That might set the stage for a Ron Paul Republican to take the White House in 2012 and bring about change for the better.

I'm beginning to lean in this direction as well. Worst case scenario, if Obama does get two Supreme Court nominations, he'll just replace two liberals with two more liberals and nothing changes.

For that reason it might be a good thing for America to experience the Obama Catastrophe and bring in a libertarian-leaning republican in 2012.

Anonymous said...

That's one thing I'll never understand, how a man who promises to increase the deficit at the current accelerated rate is superior to someone who will try to pull it in.

When will even smart people understand that there is nothing about the Republican Party in practice that remotely resembles fiscal restraint. McCain is no different, he is just another spendthrift neocon who gets off on more war. McCain is a socialist too, he just wants the wealth redistributed differently from Obama. Wake up, Republican isn't a flawless God, it's just a bunch of grifters out to lift your last dime.

Anonymous said...

Schiff: No, and I am not sure that their actions will be considered criminal.....

________________________________
Translation: Rich people in America are above the law.


The blind spots are amazing.

Anonymous said...

Mike Norman's website contrarian-update.com is no longer available

Anonymous said...

Thanks Peter!

Keep up the fight; your making a difference.

Anonymous said...


Obama and big government????


Rise social security and midecare taxes

"Free" healthcare for everyone including 20 million illegal immigrants

$850 BILLION in foreign aid for Africa and the Arabs

"Free" college tuition

More FB and banker bailouts


Yes, Obsama wants bigger givernment

Anonymous said...


i.e. Pollution isn't a crime but stealing a pack of gum is.


If pollution was a crime, you would be in prison for exhaling CO2, which Al Gore has called the most dangerous threat to earth.

Anonymous said...

tank you Peter. Eternally grateful
for your precious and honest information

Anonymous said...

Peter,

I hope you are reading the comments on this article. Keep up the good work. We do watch all your interviews and laugh at all the spinners eating their words now. Mike Norman, The Real estate lady, and all the others. It is like the special interest groups keep on trying to match you up with a spinner and they keep losing every time. It is so funny!!!

Anonymous said...

I used to pay attention to what Peter said. Then I read an interview with him where he said our current problem is due to too many government regulations. Sorry, but the problem with the past 30 years has been too FEW regulations. You lost me Peter.

Frank@Scottsdale-Sucks.com said...

I believe Obama will help people like me more while McCain will just continue to the skew to the top 10% of earners.

It will be great for you middle class until your employer closes shop and goes offshore thanks to Obama's extortionist corporate taxes. Then you'll be up sh*t's creek and can thank Obama for your layoff.

Donald said...

Ron Paul will be too old to run in 2012. Who knows, maybe he will get Alzheimers between now and then and he won't even know which planet he lives on.

Anonymous said...

BTW, where's that idiot who was bragging here of how he was buying into financials a few weeks back. Losing your shirt yet, financial wizard? Financials went down the toilet today, as I said it would, AGAIN. Bwahahahaha

I say it once again: Attention, attention! Calling all sheeple to jump in the rigged and rotten market just to get fleeced a few days later. Attention!

DOW = -240 pts
NAS = -2%
S&P = -1.9%

DOPES

DOLTS

Meanwhile, I'm getting 8% return on my conservative portfolio for the last year, and 16% before that. Nothing fancy, but I rather get 8% during the biggest financial meltdown since Depression than be 32% in the red like all of you "Fast Money" idiots. No and Wall Street still pays millions in salaries to fund and hedge managers who are down 40% the last 2 years. Why don't you pay me, since I can beat them and the S&P? Wanna know my secret? Simple, I use common sense.

Anonymous said...

Plus if Obama becomes prez for one term, the blacks may quit whining briefly and start picking up the trash on their own neighborhoods, and stop blaming the white man as a reason for breeding like flies and smoking crack.

Gee, I'm poor, so let me smoke crack and breed like flies. Then I'll blame all on the white man and wait for the Democratic party to treat me like a victim, giving me food stamps and section 8 housing at taxpayer expense.

This is the new America folks. White people want to be black rappers, bad behavior gets free housing and food, fraudsters get bailouts, kids praying before bed is sooo wrong, having a gun to protect your family at home from thugs is something to be ashamed of, allowing millions and millions of strangers to cross the border to suck our infrastructure and natural resources and depress our wages without paying a dime in taxes for it should be encouraged...

Yep, we can see that the ultraliberal approach is doing wonders to bankrupt California and soon to be bankrupt OR and WA, as all the Californians, thugs, welfare queens, and illegals move up to those states. Hey but it's different there in OR and WA, right?

Anonymous said...

Schiff,

I have always wanted to ask...Why don't you ever talk about the Amero?

RayNLA

Anonymous said...

I was the first to say that Mozilo will walk. It was part of the deal when he testified on the hill a few months back.

RayNLA

maxed said...

Thank You Mr Schiff!

Anonymous said...

Schiff,

I love you man, but now the brothas from Newport to Newark want to know to know how you felt when King was killed?

Obama 08
Ron Paul 2012

RayNLA

Anonymous said...

Obama wins and economy is magically healed next day. MSM worships at the altar of the messiah. Hope and change. I hope some change is left in our pockets after this guy is finished…

The Fallen Shakster said...

Ya ,Way to go Kieth.Very nice,Love Peter,and all that.You still got some splainin to do about dissen Ozzy though.Us evil doers rent too ya know,sheeesh.

Anonymous said...

"...Mike Norman's website contrarian-update.com is no longer available."

Folded like...
an accordian. ;^D

Thank you SO MUCH, Peter.

Jim said...

I love this part.

"...but given how bad the economy will be during the next presidential term, it might be better to have Obama win as he and his big government philosophy will get the blame."

Not that any of it will be Obama's fault, understand. Just he'll get the blame. Of course, the criminal behavior, misfeasance and malfeasance of the PRESENT Republican Administration and Republican Congress is what has brought us to this pass, but, thank GOD, the Dems will get to take the fall for it.

What an asshole.

George L said...

peter is right as always,most of the msm hate him because he's honest

we don't hate him,not us,not here.
Peter is a true patriot.

Ron Paul forever!!!

and God help America as it nears its darkest hour...

chslaxcoach said...

Watch this to the end of the 8 parts. It just gets better and better.

panicearly said...

OT but:
Influential former Pentagon official Richard Perle has been exploring going into the oil business in Iraq and Kazakhstan, according to people with knowledge of the matter and documents outlining possible deals.
http://online.wsj.com/article/SB121729971113092303.html?mod=hpp_us_whats_news

Miss Goldbug said...

Anon said:"Obama wins and economy is magically healed next day. I hope some change is left in our pockets after this guy is finished…"


Agree. That's why I'm not voting this time. Change doesnt matter, both candidates are the same.

SD said...

Love Schiff for the most part.

However, I think if you put all your money in foreign stocks back when he was telling people to get out of the dollar, you'd probably have lost a bunch of money already.

Take a look at some of the foreign stock markets (especially China). They have fallen off a cliff over the last year.

Commodities are a different issue, but I still see the same mania in those that I saw in dot com stocks and housing in earlier bubbles. I don't think there is a truly "safe" place to put money right now.