The post Economist Schiff’s Warnings Highlight Deep Flaws In Mortgage System appeared on BitcoinEthereumNews.com.

Schiff has been prescient in the past, but his observations are shocking not because they are new but because they highlight a persistent and continuing danger to the American economy. © 2019 Bloomberg Finance LP Economist and market commentator Peter Schiff is warning about what might be a repeat of the mortgage crisis of 2008. Schiff is notable for his book Crash Proof, published in 2007 and other commentary where he predicted a major economic collapse in the economy. Unlike many prognosticators, politicians, and financial advisors, Schiff is something of a skeptic of homeownership as viable investment. So, it’s worth listening to his thoughts highlighted in a recent article. The news article, titled, “Peter Schiff warns of US ‘housing emergency’ — with a cascade of defaults as Americans mail back their keys” points to the relationship between the price of homes and interest rates. During the pandemic interest rates on mortgages fell, allowing people to buy homes they might not otherwise would have been able to buy. Then prices went up and so did interest rates when massive government spending during and after the pandemic. Rates are coming down, and if prices follow, many homeowners in the first decade of paying 30-year mortgages “It’s going to create a bunch of defaults and a lot of people are going to walk away and mail in their keys because they can’t sell their houses for more than they owe,” Schiff said in the article. This is more or less what happened in 2008. People purchased homes because rates were low but so were standards. At the time, I remember I felt sort of foolish for not “getting into the market” and buying a home. There were many people who were able to buy homes they rented and others became flippers, buying homes…

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Filed under: News - @ November 5, 2025 6:33 pm