July 01, 2008

HousingPANIC Quote of the Day

"The United States has really been living in a fool's paradise, or a phony economy, probably for more than 20 years. But our economy has been growing and getting bigger and bigger.

We have been able to convince the world to lend us money and to provide us with goods that we don't produce and that we can't afford to pay for with exports. And it has gotten to the point now where the problem is so big, especially since the real-estate bubble.

We've now borrowed so much money from abroad. Our trade deficits are now very big, and our industrial base and our infrastructure have been allowed to decay for so long, that we are now at a point that we can only survive as an economy thanks to the charity of the rest of the world.

They have provided us with all the goods that we can no longer produce because we lack the industrial capacity. And they have to lend us the money because we don't have any savings anymore."


- Peter Schiff, June 2008

43 comments:

keith said...

From the Barron's interview:


But isn't there an argument that once we clean up this housing mess -- along with the credit bubble, whenever that occurs -- the U.S. will be a lot closer to a bottom, where the outlook begins to improve?

I don't think that's true. The resolution to the housing problem is going to mean housing prices are going to be a lot lower than they are now, and most Americans are not going to have any home equity. It's going to mean that trillions of dollars will have been lost by the lenders. When the home equity is gone, Americans are broke, as they don't have any savings. All they had was their home equity. They were counting on their home equity, without which they will be unable to pay off their credit cards.

devestment said...

I’m depressed. This isn’t fun any more.

Worst Ever 43 said...

Quite a legacy for Bushco-Cheneyburton:

From the World's super creditor to homeless bum-in-the-street having to depend on pity from our enemies for survival in eight short years.

Bush, I have no more words to describe my profound Fear and Loathing of you and your White House crew.

In My Very Humble Opinion (and 80+% of the rest of the nation)You are the Worst Ever Lived in America. THAT is your 'Legacy" of Shame and Doom.

Mission Acomplished

Mike Hunt said...

Hi Keith,

I really like Peter Schiff and thing he's been on the money.

But please remember he's not in this for charity... he's got a product to sell (follow the money, remember) and that makes him a paid schill (pun intended). He will keep saying the same message and try to pull in new investors even after the dollar has bottomed. Just the fact that he has made so much in returns already puts him at a major disadvantage to deliver the same rate of return in the future.

Think about it- do you agree?

-Mike

k.w. - Southern Ca. said...

Buscho accomplished what they wanted - a massive transfer of money to the very, very wealthy - those who least need it, and who were behind this catastrophy from day 1.

Distressed borrowers will now need to depend on their maxed-out credit-cards to start paying off their raising debt, but the banks have already started to lower credit-card limits, which will make matters even worse.

More cars (SUV's, boats) up for sale in Huntington Beach today, it's beginning to resemble a used car lot on many streets.

Bitterrenter said...

Hmmm. I wonder who we can blame for this turn of events? The decaying infrastructure, the escalating debt, the nurturing of greed and materialism, the lack of a vision?

Any ideas, brainstems? Well here, let me try and help you. Who turned us from the largest creditor to biggest debtor nation? Who favored tax cuts over investment in our country? Who instilled the intellectual sloth in our people that led them to seek hedonistic, selfish pleasure through acquiring "things" over all else?

Who ridiculed the liberals for preaching that there was life beyond one's own immediate gratification? Who rolled their eyes at the ideas of community and taking care of one's culture and society?

Give up, brainstems? Not surprised. IT WAS YOUR IDEOLOGICAL COUSINS. You know, the conservatives, republicans or whatever else you want to call those subhuman miscreants you elected time after time.

Now you whine. Now you wonder how it all went so wrong.

Here's to watching your kids grow up in a shabby dog-eat-dog world that you helped create.

ENJOY!

Anonymous said...

Who elected Bush....TWICE?

Who bought all those homes on liar loans?

Who bought tons of stuff on credit and ran themselves into debt?

Who didn't care about deficit spending?

Who supported the war in Iraq hoping for cheap gas?

Who are the people who keep voting for corrupt leaders over and over based on slavish devotion to party over country?

It's America folks. America did it to itself. They voted for it. They bought it. They signed on the dotted line.

Now...they can pay the bill. It's due.

eric in vegas said...

Peter Schiff will make be on CNBC's Squawk Box today at 7:40 est. This will be his first appearance on CNBC in 9 months.

Anonymous said...

You can see it on people's faces now as they walk the streets. Fear, resignation, despondency and perhaps soon desperation.
I have never seen it this bad. I've been noticing shops are starting to close and leave empty stores. There are rent signs on the avenue everywhere. Soon sale signs will appear as they cannot obtain tenants.
Shop owners cannot pay the monthly high rents to justify running a business. Even simple places like Dollar stores, nail salons, baseball card collecting and comic stores, etc. -ALL are starting to disappear.
The other day a Diner, in business for perhaps 30 years, turned into a Chinese restaurant almost overnight. Good luck getting patrons. Most of the people who live in the area don't know anything about Asian cuisine.
Many, many stores are just sitting there empty. How long can an owner hold out?

keyser soze said...

Observations from immediate family. 2 of my brothers can build things, one built his own house and did a fine job, another can build literally anything, just give him a lathe, grinder & mill and then a welder. Their children are lawyers, salesmen and a military lifer...
Who is gonna make the stuff I need?

keyser soze said...

Mike Hunt - yes, it seems that everybody talks their book these days. It's one of the reasons I read HP, though I obviously don't agree with everything, at least there isn't a hidden monetary agenda.

keith said...

Oh, trust me, there's a hidden monetary agenda. That free beer a day that google ads pay. The best tasting kind of beer is a free one you know. And do you know the price of a Guinness over here? $10. $10 freaking dollars for a Guinness. $8 if it's more of a dodgy pub.

I agree - I trust bloggers more than the MSM or "professionals" especially bloggers who blog for passion and fun, not money or fame. And Schiff, even though he's been spot on, is also getting rich off of this stuff. Can't blame him, but it is what it is.

Cheers mate.

Anonymous said...

Bitterrenter
You are sooooo right! Now that rascally old piper wants to be paid?!? What cheek!
JDF

michael said...

"The decaying infrastructure, the escalating debt, the nurturing of greed and materialism, the lack of a vision?"

unions?

: )

Desperation has a nice ring to it... said...

"Anonymous said...
You can see it on people's faces now as they walk the streets. Fear, resignation, despondency and perhaps soon desperation."

Desperation is upon US:

I count at least 22 reported murders in the SF Bay Area in last 10 days which includes 2 weekends of sport shootings...

Last weeks landmark Supreme Court gun decision just a coincidence?

I think not.

Locked & Loaded, and watching with glee the corrupted government take American economy down and Joe/Jane Six-Pack going broke! Joe and Jane will sell their kids next to pay for SUV, Big Screen and Gas.

Priceless.

I love the smell of napalm in the morning...

definitions said...

mike hunt,

Schiff might do that, then again he might not.

He isn't a paid shill, for the obvious technical reason that he doesn't hide his affiliation, but also because he isn't paid by some company/person to do that.

He owns and runs the company and hence in affect his opinion/view is the companies opinion/view - very different than an economist talking up real estate because they are paid too even though they surely don't believe what they say.

Now, he could end up chasing the money and keep on the same message when it's no longer true and he knows it.

Or he could simply get it wrong and keep on the same message when it's no longer true because he thinks it still is true.

Or when he thinks the US has bottomed and is about to rebuild change europac to be a company that puts money in the US.

I don't think we'll know for a long time, since this has a long way to go still.

But calling him a paid shill is wrong by definition, and the implication has no grounds yet since things haven't reversed yet.

mike said...

i don't see why so many of you first posters blame bush. yeah the war is stupid. but bush did not take us off a gold standard. bush did not sign the fed into existance. bush did not chair the fed. bush did not make americans buy plasma tvs on their credit cards and bush did not tell everyone that housing can do nothing but go up.

bush sucks, but you are a fool to attribute all of this turmoil to him.

Veronica Lodge said...

RE: The systematic destruction of the United States by the Military-Industrial-Congressional Complex...

Why beat around the bush (no pun intended) when you can just come out and say it: The United States is being bled dry by the Bush Crime Syndicate.

Can a warmongering, bankrupt nation provide its citizens with security and hope for the future? Can the land of freedom, the arsenal of democracy be only a few heartbeats away from death?

"Now, we can see a new world coming into view. A world in which there is the very real prospect of a new world order." --George Herbert Walker Bush, 9/11/90.

But enough of this silly talk. I was only joking. Only an idiot would believe that the US is run by war criminals and crooks.

Don't worry, your Social Security and Medicare entitlements are safe, the dollar is sound and the Constitution will protect you and your family. Your job is secure, your retirement will be adequately funded, your home will enjoy huge appreciation, peace will guide the planet and love will steer the stars.

Now, let's get back to our preoccupation with the sideshows put on by Hillary Clinton, Barack Obama, John McCain, Hollywood freaks, junky sports heroes and American Idol contestants.

Your future is secure. Really, it is!

V.L.

Anonymous said...

Its true. bloggers just want to let out what the media will not talk about.

Cheers Keith.

Enjoy an ad brewski on me.

Anonymous said...

yep. and they are printing more of their money (vietnam, china, with vietname starting to really show inflation) to buy our dollars.

asia is experiencing true inflation, we are not. sure prices are going up but we have a net contraction of money AND credit in this country.

Anonymous said...

Bush, I have no more words to describe my profound Fear and Loathing of you and your White House crew.

--------------------------------------

dude, bush just continued the failed policies of previous administrations. obama will do the same. problem is, it is really coming to a head and may burst in grand fashion under obama.

Mark in San Diego said...

The only "good news" is that unlike 1929, this is unfolding more slowly than before, and some people still don't see it at all. . .there is still a lot of fat in US - in both senses of the word - I toured the poor parts of San Diego yesterday (the foreclosure areas) and still saw three cars in each driveway (although there could have been three families in each house), boats in the yard, etc. If Americans simply cut out the Carnival Cruises, Disneyland for the kids, and nights out at Olive Garden, they could probably pay their bills. . .people who are working class seem to think they are upper middle class. . ."everyone can't be upper middle class" as someone said years ago. . .everyone needs a tatoo! "LIVE WITHING YOUR MEANS"

Anonymous said...

The other day a Diner, in business for perhaps 30 years, turned into a Chinese restaurant almost overnight.

Well, NO SURPRISE AT ALL.

The Chinese are the ones with the money to buy business property right now.

Why? Because they don't buy big-screen TVs, light-switch clappers, plastic flamingos, etc, etc. They make them.

LIVE BELOW YOUR MEANS!

k.w. - Southern Ca. said...

Brutal - but right on the money.


Bitterrenter said...
Hmmm. I wonder who we can blame for this turn of events? The decaying infrastructure, the escalating debt, the nurturing of greed and materialism, the lack of a vision?

Any ideas, brainstems? Well here, let me try and help you. Who turned us from the largest creditor to biggest debtor nation? Who favored tax cuts over investment in our country? Who instilled the intellectual sloth in our people that led them to seek hedonistic, selfish pleasure through acquiring "things" over all else?

Who ridiculed the liberals for preaching that there was life beyond one's own immediate gratification? Who rolled their eyes at the ideas of community and taking care of one's culture and society?

Give up, brainstems? Not surprised. IT WAS YOUR IDEOLOGICAL COUSINS. You know, the conservatives, republicans or whatever else you want to call those subhuman miscreants you elected time after time.

Now you whine. Now you wonder how it all went so wrong.

Here's to watching your kids grow up in a shabby dog-eat-dog world that you helped create.

ENJOY!

Anonymous said...

If Americans simply cut out the Carnival Cruises, Disneyland for the kids, and nights out at Olive Garden, they could probably pay their bills.

Mark in San Diego has a point. In 1980 when my wife and I had just bought a new home in the Minneapolis area, cell phones and high speed internet didn't exist. Cable was mostly for rural areas and didn't cost that much. Today its not uncommon for families to be spending $200 a month on these things.

Anonymous said...

bitteridiot and friends keep drinking the kool-aid from obama's toilet

The Housing Bubble Ate My Balls. said...

Mark in San Diego said...

"The only "good news" is that unlike 1929, this is unfolding more slowly than before"

Read the TimeLine on Wikipedia
http://tinyurl.com/6lql3l

It was slow before too... While the market "Crashed" on October 29, 1929. The market started down on September 3rd. Bumped up a bit and then started to unravel on October 24th.
It took until July 8, 1932 for the Dow Jones Industrial Average reaches its lowest level of the Great Depression, bottoming out at 41.22.

Everyone things the market crashed overnight and everyone woke up the next day to the Great Depression. Thats not how it happened back then and it won't now. However, I think it's safe to say the process has begun.

Anonymous said...

I read this post on this site I believe if not another one but it was an insight to the future it sounded a little obscene then but a little closer to the truth today. If you would like a good read its:
Are we headed for another great depression and interview with Elaine Meinel Supkis as written by Mike Whitney published on 5/12/07 the website would be www.dissidentvoice.org archive May 2007.
You may have your eyes opened a little wider and all this crime as predicted devaluation of the dollar as predicted. Life as you know it growing most distant as the days go by. Good Luck and God bless, get your rifles and small arms ready.

Anonymous said...

"You can see it on people's faces now as they walk the streets. Fear, resignation, despondency and perhaps soon desperation.
I have never seen it this bad. I've been noticing shops are starting to close and leave empty stores."

What part of the country are you in? Certainly not Houston. Everywhere I go, businesses are hiring.

Anonymous said...

@ Bitterrenter

Who instilled the intellectual sloth in our people that led them to seek hedonistic, selfish pleasure through acquiring "things" over all else?

Who ridiculed the liberals for preaching that there was life beyond one's own immediate gratification?


Hmmm...I see contradiction again. You say that liberals are sooo intelligent but then you say that they're easily manipulated by conservatives. Which one is it? Are you guys hot $hit or naive? Can't have both ways (pun intended).

As far as I remember, the liberals have been voting with Bush most of the time, from invading Iraq to eavesdropping bills.

Oh, and one more thing, are you going to tell me that all those millions of home gamblers who were trying to game the system at expense of the fellow men were only conservatives?

BTW, I was a registered democrat until last month. Now Independent. Both parties suck a$$ (pun intended again).

Anonymous said...

Metromedia Restaurant Group - which owns Bennigan's Grill & Tavern, Steak & Ale and Ponderosa - has quietly put 59 of its Florida restaurants up for sale or lease. A Metromedia spokeswoman confirmed the Davie Bennigan's will close and another shut June 23 on Miami's South Dixie Highway.

Orlando Business Journal obtained a document given to real estate brokers that lists 40 Bennigan's, eight Ponderosas and 11 Steak & Ales sites statewide.

Anonymous said...

Well, there's a bright side to it. At least we'll get rid of those union freaks who are a drag to our country and economy. No more high school dropouts earning six figures to do a sloppy job.

Now if we could only get rid of those firemen who can't even solve an algebra problem but suck six figures from taxpayers just to be waxing the truck all day or taking pictures with fat chicks.

Anonymous said...

Because they don't buy big-screen TVs, light-switch clappers, plastic flamingos

Hey, lay off the pink flamingos because they're kitsch, all right?

http://en.wikipedia.org/wiki/Kitsch

Anonymous said...

The Chinese are the ones with the money to buy business property right now.

Yep, I guess we should get into the slave child labor and counterfeit business to get wealthy like the Chinese. But the main question remains, what's up with eating with two sticks?

bitterrenter said...

Anonymous idiot 9:14,

Not only don't liberals vote with Bush, until they took back Congress in 2006 they were kept out of meetings, conference committees, etc.

Keep with that "both parties suck" thing. That'll get you far. See, there's a magical "third way" that will give you a first rate country with all the trimmings and not ask you to pay for it.

Unions make us all stronger said...

michael said...
"The decaying infrastructure, the escalating debt, the nurturing of greed and materialism, the lack of a vision?"

unions?

: )

Anonymous said...
Well, there's a bright side to it. At least we'll get rid of those union freaks who are a drag to our country and economy. No more high school dropouts earning six figures to do a sloppy job.

Now if we could only get rid of those firemen who can't even solve an algebra problem but suck six figures from taxpayers just to be waxing the truck all day or taking pictures with fat chicks.

What a couple of douche bags. The destruction of organized labor in this country has been a goal of the PTB since before Reagan. It is all part of the same policies and plans that have destroyed US industry and our economy and is now destroying the middle-class. The lie about six-figure high school drop out union slobs is right up there with Ronnie's Cadillac driving welfare queens.

Turn off the talk radio. Do your own research. Think for yourself. Don't let Rush do it for you.

And sorry to disappoint you but union membership is up. When times get tough people remember that founding priciple of this great country of ours-United we stand, Divided we fall.

I think you both are just bitter because you bought the lie that spending four years at a state college with a C average and a marketing major was the ticket to lifestyles of the rich and famous. How's that working for you? Not to well considering how bitter you both are. Bet you're are both so pissed about it that you are in default on your student loans.

Here's a news flash- University exist to educate people not to train them to be stock brockers or middle managers. Alot of people don't realize that and all they get out of their university experience is what they put in- the bare minimum. And when they realize it is not the golden ticket to Wonka's Factory. They get bitter.

I went to University for an education and graduated Cum Laude. I joined a union because I believe in the cause of organized labor which to improve the conditions of all workers in the USA not just union members.

And guess what-I get to wake up at 4:00 AM tomorrow, make my twenty minute commute, spend my day doing a job I enjoy and am damn good at, and I get to work with I respect and enjoy working with.

Think about that when your crawling through traffic at 8:30 hoping traffic clears up, cause you want to get to your cubical on time cause there has been rumours of lay-offs.

Anonymous said...

"...America did it to itself...

Now they can pay the bill.


AMEN, BROTHER.

Ain't democracy grand?

Be nice to us, or we'll bring it to your cuntry as well.

Anonymous said...

.




I only paid for two laps on this roller coaster.....I want off!



.

Anonymous said...

ohh, too bad for the intellectual-Birkenstock baristas. What are they going to do now? Perhaps a career change as a Tattoo parlor receptionist, PETA janitor, or Obama's sign holder?

Starbucks closing 600 stores in the US

SEATTLE --Starbucks Corp. said Tuesday it will close 600 company-operated stores in the next year, up dramatically from its previous plan for 100 closures, a sign the coffee shop operator continues to struggle with the faltering U.S. economy

About 12,000 workers, or 7 percent of Starbucks' global work force, will be affected by the closings, which are expected to take place between late July and the middle of 2009

Mike Hunt said...

Definitions,

Maybe calling Schiff a shill was a bit harsh but I stand by the fact the guy has a product to sell and a company that he needs to keep growing. He will try to pull as much new money in as he can. He has a vested interest. So it's not fair to treat him as an unbiased source of information, by definition.

As I said earlier I like Schiff and agree with a lot of what he says. But I do remember he has something to sell, otherwise he'd be blogging and not on TV pumping his company.

-Mike

Anonymous said...

What's up HP

Deflation has won hands down, the effects will be taking a worldwide tour very soon! Cali. is dead and will bring everyone else down with it. Cash is King in this era!

I am finding blood in the streets in several areas of Cali. and the O.C. has joined the party.

The big bang event will happen when the Olympics are over. The chinese expansion is propped up because of the olympics and after its over... its over! Shanghai composite declines tell the whole story. They don't believe in their economy so why should we.

Iceman

don_oc said...

Peter Schiff is right.

I will tell you how you can prove that: go out of your house, knock to your neighbors doors (say 10 of them) and ask them what they think of Schiff's message.

They never heard of him.

But at some point in the future, everyone will know about Schiff. Because yes we don't make squat anymore and we think that 'air of superiority' pays back loans to foreigners.

Once your neighbors start discussing Schiff, then you can consider if his message is stale.

John S said...

Who turned us from the largest creditor to biggest debtor nation?

Richard Nixon. Or do you really believe the U.S. was still a net creditor during the Clinton administration? No wonder you believe in the Black Jesus.