CNBC brought in both Peter Schiff, president of Euro Pacific Capital, and Susan Wachter, a real estate professor at Wharton, to discuss whether they thought falling home prices would be good for the overall economy. As with the majority of CNBC interviews, the two were of polar opposite opinions. Peter points to real estate rising at a rate of 19% per year for nine years, and prices still being 20% over the 100 year trend line. Peter sees the prices still being artificially high propped up by zero percent interest rates. He feels that this is stifling recovery and forcing other things to become more expensive. Susan completely disagrees and says there is nothing magical about the 100 year trend line. She likes more, the housing prices to rents ratio which is more in line.
See the full debate below:
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