Peter Schiff

Lenders and the government will tighten credit standards and US home prices will fall sharply from their highs.

“You're going to start to see both the government and the lenders re-imposing lending standards and tightening up on credit. And these sky-high real estate prices are going to come crashing back down to earth.”

Said on

31 December 2006 · Fox News Channel debate, December 2006 (Wikipedia dates it Dec 31, 2006), as aired by NPR

Source

The Man Who Predicted The Economic Meltdown · NPR

Should come true

No date given

How sure they sounded

You're going to; are going to

Categories

EconomyBanking

Importance

4 of 5 · The US housing crash triggered the 2007-09 global financial crisis.

Outcome

Accurate Happened 31 December 2007.

The S&P/Case-Shiller US National Home Price Index fell steeply from its 2006 peak through 2007-2012, a drop of roughly a quarter. Lending standards tightened sharply as the subprime market collapsed in 2007-08.

Evidence:

• https://fred.stlouisfed.org/series/CSUSHPINSA
• https://www.npr.org/transcripts/97801606