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January 6, 2010

Ben Bernanke And The Housing Bubble

“He (Bernanke) was completely wrong in his assessment of what created the housing bubble. He basically said that the low interest rates from the Federal Reserve had nothing to do with it. He said it was the proliferation of adjustable rate mortgages or interest-only mortgages.

That’s completely wrong. The only reason that so many people took out adjustable rate mortgages was because they were so much less expensive than the fixed rate mortgages because of the Fed’s low interest rates. You can’t go out there and say that low interest rates had nothing to do with it and then blame it on the mortgage products that only existed because of the low interest rates. How can he not see that?”

in thehill.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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