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February 1, 2011

Housing: The Unfortunate Combination Of Government Guarantees And Cheap Money Produced A Toxic Brew

"The government has been subsidizing housing since the Roosevelt administration, and we never had a bubble of this proportion. It was not until these guarantees were combined with a 1% federal funds rate that they became supercharged. It was the unfortunate combination of government guarantees and cheap money that produced such a toxic brew." - in uk.ibtimes.com

Related: Lennar Corporation (NYSE:LEN) ,PulteGroup, Inc. (NYSE:PHM), Toll Brothers, Inc. (NYSE:TOL), iShares Dow Jones US Home Const. (ETF) (NYSE:ITB)

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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