In fact, Schiff thinks these catalysts will combine to cause an "inflationary maelstrom" that will "wipe out entire generations of retirees" who have their nest eggs invested in the market.
Let's take a look…
Schiff Sees a New Kind of Echo Bubble
This new housing bubble – coined an "echo bubble" by some economists – is something we've warned you about before.
In the United States, there are at least six major cities –
In fact, some have seen over a 50% increase since 2011.
What Is an Echo Bubble?
A post-bubble rally that becomes another, smaller bubble. For example, after the technology bubble that occurred at the turn of the 21st century – one of the biggest bubbles of all time – people believed that another echo bubble was on the way.
However, "[t]his bubble is different because it's an institutional bubble," said Schiff. "You have record ownership of single-family homes by hedge funds and private-equity funds. They bought these things up in '09 or '10 or '11, and their plan was to rent them out for a while and then sell them to other tenants."
Here's the problem…
"The tenants are now broke," said Schiff. "They're unemployed — they have credit card debt, auto debt — they can barely afford to even rent the houses!"
However, this housing bubble alone won't crash the economy, according to Schiff.
- Source, Money Morning