The 2009 Henry Hazlitt Memorial Lecture, presented by Peter Schiff. Recorded at the annual Austrian Scholars Conference, Ludwig von Mises Institute, 13 March 2009. Austrian economists tend to have some very conservative views, and while many of them are unpalatable there are many that are equally pragmatic, Keynesian economics are definitely the popular choice as of late, but the free marketers still have valid points and Peter Schiff has a way of describing the economy and the situation in a very simple manner. He shot to fame for being one of the first practitioners in the USA to say that they were in a bubble and how the fallout would begin and what to expect when it did, his vision was almost 20/20.
I am dismayed at Brian Lenihan’s new measure that we are told will be implemented in the Budget regarding the provision of loans from the Government to ensure first time buyers can get mortgages for properties on which the banks can’t/refused to provide mortgages.
This is an attempt to put a floor under the housing-correction, and it is also a flawed error meddling with a market that is going through a perfectly healthy correction. I am aware that since it only applies to new builds it only benefits members of the CIF and actually acts as a handicap to private seller. If I wish to sell my house I will be at a distinct disadvantage to somebody who has a ‘new house’ to sell, this is a distortion and is of no benefit to the buyer who may in fact not wish to purchase a newly built house.
Effectively the Government has decided to provide loans that the banks won’t, in the past we used to refer to these loans as ‘sub-prime’, this was where a person could get a …