Free Market Capitalism: Peter Schiff Meets the FHA

Pinnacle Digest writes: Last week, Peter Schiff testified in front of the Congressional House Subcommittee on Insurance, Housing and Community Opportunity. To say he did not hold back would be an understatement. He did not apologize for trying to inject respect for the Constitution and free market capitalism into a venue that has been doing its best to destroy both.

The subcommittee was considering whether to expand the activity of the FHA to insure loans for multi-family (apartment) buildings. The people who benefit from this were in the room arguing Schiff. Peter explains bluntly that this is exactly what caused the initial housing bubble and argues fiercely against any government guarantees.

The main message throughout Schiff's address was that loan guarantees expose taxpayers to risk and that the housing market would be healthier if the government left it alone. The free market is the only market which can uplift the poor and create a real prosperous economy and housing market. Schiff leaves a lasting impression on the congressmen present and a stark reality of what the FHA has really done to the housing market in America.

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