Peter Schiff

But I was pointing out, well, what happens to the lenders who own all that paper when interest rates eventually go up and they're stuck with this long-term debt where they're collecting 3% or 4%, but now their cost of funds are 5% and they're getting killed?

And I said exactly what's happening with the housing market now.

You have a situation where the Fed has inflated a housing bubble bigger than the one that popped in 2007 because they kept interest rates so low and people were able to borrow money to bid up home prices.

But now that mortgage rates are not rock bottom anymore, they're still not high.

They're still low by historic standards.

They're just not as low as they were, right?

7% mortgage is still pretty cheap.

But you can't afford to buy a home at a 7% mortgage that was priced for a 3% mortgage.

And so now you have a situation where real estate prices have to fall.

Well, I mean, it takes some time

Yeah.

Well, you know, what's happening is a lot of the people who own their homes and have these low mortgages, they don't feel any pressure to put them on the market.

I mean, if they can get a high price, they'll sell.

If not, they're just staying on their homes.

Yeah, it would be crazy.

Meanwhile, we're not building a lot of new homes because it's very expensive to build them.

And in fact, Trump has made them even more expensive with tariffs.

So we have tariffs on lumber, we have tariffs on copper and steel and all the things that need to build houses.

Plus, we're chasing out all the workers.

I think something like 20% of the people who work in construction are illegal, right?