Peter Schiff on the bailout

[dawnbt]

...Interviewed by AIM before the House of Representatives on Monday afternoon voted down the “bailout” scheme, at a time when it looked like the plan would actually pass, Schiff had shocking advice for ordinary Americans.

“The first thing you do if you have a mortgage is you stop making the payments,” he said. “That’s the number one thing for people who have mortgages based on this plan. And use that money to buy gold or stock up on food. You’re going to need it. Meanwhile, no one is going to kick you out of your house. You’re going to be able to live in your house for probably a year or two before the government calls you up to give you a lower mortgage because nobody is going to foreclose on you right now. Why would you foreclose? You sell the loan to the government. This plan is a huge moral hazard and it’s going to lead to a surge in mortgage delinquencies.”

Full story: http://www.newswithviews.com/Kincaid/cliff256.htm

 

[Johnnybags]

Ita a great point, if your even mildly near

breakeven, stop paying, buy necessities and wait for the FEDS to lower your rate and maybe even enact legislation to not be able to put you into the bad credit pool if you pay afterwards. They are creating a monster of a problem, unintended consequences. Before its over I bet credit problems between certain dates will be exempted from the credit agencies by law. Either that or the banking credit system will be frozen forever to ordinary Americans.

 

[Deborah K]

As long we continue to monetize our debt this problem will never go away no matter what they do. There is no intention to change that, this is an attempt to get us into the NAU

 

[Ozwest]

I listen to Peter Schiff.

Especially now.

 

[Johnnybags]

Bailout will beget another bailout

I am 100 percent positive we will have a mtg revolt if it goes thru as it is written, without taxpayer quid pro quo loans for preferred with a high pricetag. Noone near upside down is going to swim up river with congress devaluing their buying power fast and bother paying the bank, they will simply wait for Uncle Sam to come to the rescue. Its a revolution without guns, I like the idea. Stop paying everything but utilities, save up under the mattress and wait for a friendly government hack to offer you a deal.

 

[luke-gr]

That is an awesome point.

 

[gls]

Schiff called the Tech Wreck in 1999, saving his clients at Euro Pacific Capital a fortune when the Nasdaq lost more than 70% of its value.


He called the bull in crude oil, days before it began a historic march from $60 to $140.


He called the sub-prime crisis and housing crash, just before the bottom fell out in late 2006.


He called the gold boom just before the yellow metal began its run-up from $480 to $1,000.

Now when Schiff says that gold will be 2K an ounce next year, I tend to believe him.

 

[Fight-n-Mad]

I'm starting to take a perverse pleasure in seeing them undermine the foundations of their own system. If it wasn't for the pain that so many will feel, and the opportunity this will present for an even worse system to be implemented, I'd say go ahead and let the bastards destroy themselves.

 

[politicsNproverbs]

Thanks for posting that Schiff info. Fascinating fellow. I was "reminded" of him just the other day when I saw his interview at the C4L Convention back in early Sept.

After that I began reading his website, and saw he is son of Irwin Schiff, lol, totally makes sense now, and makes Peter the Jr. even more A-OK in my book. You got to love that Irwin Schiff for standing up to the IRS all these years.

Like father, like son. Bold as lions!

I just read here earlier today in another thread that Peter is kinda pricey for financial consultation, wants 20%. Too bad. I'd like to get my elderly folks to hook up with somebody like that... all their finances had been with BOA and they just recently switched it all over to Wachovia, and hello...

 

[tmosley]

I wonder what his advise would be for those with other kinds of debt? Credit cards and student loans are pretty killer at this point.

 

[Danke]

I just read here earlier today in another thread that Peter is kinda pricey for financial consultation, wants 20%. Too bad. I'd like to get my elderly folks to hook up with somebody like that... all their finances had been with BOA and they just recently switched it all over to Wachovia, and hello...

I'm not sure where you get the 20% figure. Is that on your profits? I have talked to one of his brokers, and it sounds like in the neighborhood of 3%. Maybe more if your portfolio does really well, and less or nothing if you trade goes south and they move you into something else.

 

[misericordia]

I'm with Schiff. However, there was a thread here yesterday that said the subprime mortgages would be given to the Chinese for their US debt, and they were sending enforcers over to police the evictions.

I don't know if it's true. Comments?

 

[Ozwest]

I'm with Schiff. However, there was a thread here yesterday that said the subprime mortgages would be given to the Chinese for their US debt, and they were sending enforcers over to police the evictions.

I don't know if it's true. Comments?

Get real.

 

[chesb]

Is anyone going to actually try this?

 

[autobot]

I love my house and need it to live in with my small children. We are upside down about 50,000. Not too bad considering I live in Vegas.

I can't imagine not paying mortgage payments. Too risky. That said, I am really frightened that Peter Schiff said this because he has a good track record. But wasn't he wrong about the price of gold?

 

[theoakman]

I love my house and need it to live in with my small children. We are upside down about 50,000. Not too bad considering I live in Vegas.

I can't imagine not paying mortgage payments. Too risky. That said, I am really frightened that Peter Schiff said this because he has a good track record. But wasn't he wrong about the price of gold?

Peter Schiff was telling you to by gold in 1998. No he wasn't wrong and time will tell on whether he was wrong on the future price of gold. People also claimed Peter was wrong on gold when it pulled back a few years ago as well. Get informed. Peter has been right the entire time. In fact, he's more right than ever right now. Fannie and Freddie collapsed. The government is bailing out everyone. It's happening just like he said it would. Just because some stupid chart shows a 4 month period where gold went down doesn't mean he was wrong.

 

[NinjaPirate]

I love my house and need it to live in with my small children. We are upside down about 50,000. Not too bad considering I live in Vegas.

I can't imagine not paying mortgage payments. Too risky. That said, I am really frightened that Peter Schiff said this because he has a good track record. But wasn't he wrong about the price of gold?

I tend to agree with you. I'm upside down on my mortgage as well, and while Schiff makes a good point, what he's asking is totally against my principles.

However, if the officials who were elected to represent us are not doing their job we have to make a statement some way. And, if our economy is going down the shi++er we might as well add fuel to the fire and expedite the process.

 

[theoakman]

I'm not sure where you get the 20% figure. Is that on your profits? I have talked to one of his brokers, and it sounds like in the neighborhood of 3%. Maybe more if your portfolio does really well, and less or nothing if you trade goes south and they move you into something else.

20%??? You're nuts. Hedge funds charge 20%. Schiff charges 3% on the transaction alone. He doesn't take any profits.

 

[theoakman]

I tend to agree with you. I'm upside down on my mortgage as well, and while Schiff makes a good point, what he's asking is totally against my principles.

However, if the officials who were elected to represent us are not doing their job we have to make a statement some way. And, if our economy is going down the shi++er we might as well add fuel to the fire and expedite the process.

principles go out the window when the government starts robbing you.

 

[InThaBackGround]

hey

...Interviewed by AIM before the House of Representatives on Monday afternoon voted down the “bailout” scheme, at a time when it looked like the plan would actually pass, Schiff had shocking advice for ordinary Americans.

“The first thing you do if you have a mortgage is you stop making the payments,” he said. “That’s the number one thing for people who have mortgages based on this plan. And use that money to buy gold or stock up on food. You’re going to need it. Meanwhile, no one is going to kick you out of your house. You’re going to be able to live in your house for probably a year or two before the government calls you up to give you a lower mortgage because nobody is going to foreclose on you right now. Why would you foreclose? You sell the loan to the government. This plan is a huge moral hazard and it’s going to lead to a surge in mortgage delinquencies.”

Full story: http://www.newswithviews.com/Kincaid/cliff256.htm

I went to college with a John Bender at NCSU??