Peter Schiff : The housing prices have to come down a lot more

Peter Schiff : The Trade For The Next 12 Months CNBC Fast Money 09 Mar 2010

Peter Schiff : My Strategy is not to be short US Stocks , but mainly long foreign stocks, you better off being long international Stocks then short US Stocks

There are only two props right now in the housing market , one is the government guaranteed mortgages , and the other one is the artificially low interest rates and neither one is sustainable says Peter Schiff " you cannot have a housing market where the government co-signs everybody's mortgages , that leads to the irresponsible behavior , housing prices have to be a function of the supply of houses for sale and the number of buyers who can actually afford to pay for them without government help , and based on that criteria housing prices have to come down a lot more , and when it will do it exposes all the bad debt on the books of the banks , the banks are basically insolvents , the government gonna have to bail them out again , and of course the federal Reserve has a trillion and a half worth of this stuff on its balance sheet , it tries to figure out how to exit that , it can't because there are no buyers" Peter Schiff explains