If home prices had followed that average trajectory he says the Case Shiller Index should be at 126.7 (in October). Instead, it was at 159.
”This would suggest the index would need to decline an addition 20.3% from current levels.”
For what it’s worth Schiff does tell us, “we don’t have to get there through a big drop in the price of houses; we could also get there because the price of everything else but houses goes up.”
But either way, if Schiff is right, homeowners are looking at pain.
We know that Schiff is a tad dramatic – some would say alarmist – but his forecasts are not without merit.
In late 2006, Schiff predicted the housing bubble and resulting subprime mortgage crisis and in late 2008, he predicted the automotive industry crisis and the crisis in the banking and financial markets.
I’ve you agree with Peter Schiff’s thesis, Steve Cortes says the trade is short the XHB .
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Trader disclosure: On December 30, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes Is Short (XHB), Is Long S&P; Cortes Is Short (XRT), Is Long S&P; Cortes Owns (TSN); Cortes Is Short (LVS); Cortes Is Short (DB); Cortes Is Short (BCS); Cortes Is Short Gold; Cortes Is Long U.S. Dollar vs. Mexican Peso; Jon Najarian Owns (AAPL), Is Short (AAPL) Calls; Jon Najarian Owns (VZ), Is Short (VZ) Calls; Jon Najarian Owns (MSFT), Is Short (MSFT) Calls; Jon Najarian Owns (IBM), Is Short (IBM) Calls; Jon Najarian Owns (BBY), Is Short (BBY) Calls; Jon Najarian Owns (ADBE), Is Short (ADBE) Calls; Jon Najarian Owns (V), Is Short (V) Calls; Jon Najarian Owns (NXY), Is Short (NXY) Calls; Jon Najarian Owns (WLT), Is Short (WLT) Calls; Jon Najarian Owns (VLO), Is Short (VLO) Calls; Jon Najarian Owns (GS), Is Short (GS) Calls; Jon Najarian Owns (MS), Is Short (MS) Calls; Jon Najarian Owns (ANR)
PATTY EDWARDS
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (GS) For Clients
Edwards Owns (C) For Clients
BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (GDX)
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Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (SWC)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (LYC.AU)
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Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (BBT)
Accounts Managed By Kanundrum Capital Are Long U.S. Dollars
Accounts Managed By Kanundrum Capital Are Short Euro
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