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- 1 Peter Schiff, the CEO of Euro Pacific Capital predicted dark days for the banks due to exposure to the real estate market.
- 2 Banks surpassed levels, facing bigger real estate problems than they did in 2007.
Peter Schiff is worried about the banking future, expecting dark days for banking services mainly in the field of the real estate market. Recently, Schiff issued a warning about the upsurging danger banks are experiencing due to their excessive involvement in the real estate market. Banks surpassed levels, facing bigger problems than they experienced in 2007.
What did Peter Schiff Predict?
The CEO of Euro Pacific Capital, Peter Schiff raised alarm bells to warn banks about the dark days due to their over-involvement in the real estate market. For the past few days, Peter has been continuously observing financial marketing and came up with disappointing news for banks.
“Banks surpassed 2007 levels, and may face consequences due to growing real estate exposure” stated Peter Schiff. Apart from the CEO position, Peter also holds multiple positions in different financial services firms. Experience from different positions and working made Peter much more capable of revealing such big warnings to the banks which are growing real estate exposure.
Peter alerted the banks for the same in early October.
Alternative lending options or competition poised by traditional lenders emerged as one of the main reasons behind the days. The issue of alternative lending options has led to conventional banks experiencing risk to maintain market share. The increased prevalence of adjustable-rate mortgages is another factor that may be accountable for the bank’s current situation. However, after the 2007 incident, the financial regulations may appear to have tightened but still lack the bite to curb risky banking activities.
Another major element is the inflation of real estate prices, mainly in terms of the residential segment. Hikes in real estate prices showcased less affordable for middle-class buyers, forcing financial service providers to offer more credit and extend their lending criteria.
After the 2008 financial crisis, the economic state of the banks was shaken which is another major cause behind the current position of banks in the US marketplace. In addition to this, the transfer of risks to the taxpayer by government-sponsored entities including Fannie Mae and Freddie Mac may also be accountable for the present situation.
Peter’s Advice to the Financial Sector
Peter Schiff is a strong player in the financial market and makes statements based on accurate analysis and observations.
Considering the current situation, he is mainly worried that the yields offered in the bond market do not adequately represent the high level of risks and are harming the banking sector as a whole.
In addition to this, Peter advised banks who are looking to protect their investors to move towards alternative assets, mainly precious metals. Moving towards metals not only helps investors safeguard their investments but also expands their portfolio which could spare them from any financial trouble shortly.
Conclusion
Peter Schiff, the CEO of Euro Pacific Capital warned banks about their growing exposure in the real estate market. The situation is surpassing the conditions of 2007, ready to offer dark days to the financial sector soon. Investing in precious metals is advised by Peter.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
