Many of you have seen this video on YouTube where investment expert Peter Schiff is shown many times on US TV in 2006-2007 explaining why the US was in a property bubble and why it was all going to collapse. If you haven’t seen it, it’s hilarious and depressing at the same time.
I don’t claim to know much about investing but when we were moving from Dublin to Cork in 2003 and saw that our house had increased in value more than 400% in 9 years, we took the money and ran. Even in 2003 the valuations seemed idiotic. By 2007 they were in the realms of fantasy land. Of course many people told us we were stupid and if we’d rented the house out in Dublin we’d have made another €200k minimum when we went to sell. But when would we have sold? 2005? 2006? Or, gawd ‘elp us, 2008? Did I mention we sold our Eircom shares after 2 weeks? Maybe we do know what we are doing!
Then today I listened to this podcast of Peter Schiff speaking at the 2009 Austrian Scholar’s Conference. It’s long but utterly riveting. You think the worst is over? You think G20 is going to sort it all out? Listen to this and be afraid, be very afraid.