Quoting Peter Schiff: Not a Crisis, A Collapse

I recently stumbled upon a site called The Coming Depression. On the site there was a recent article about Peter Schiff that also contained a video you must see. In the video, Peter Schiff is on the show Fast Money and is dubbed, “The Man Who Called the Recession.” He was publicly calling the recession in 2006 & 2007. I love what he has to say! It is so on target.

He explains that this isn’t just a financial crisis, it’s an economic collapse (yup!). The entire phony economy is collapsing. There is nothing the government can do to stop it, they should get out of the way and let it happen. AMEN!!! Finally… An expert that is in the industry and gets it! He goes on to explain that the world thought we had an economy, but for the last few years all we had was a bubble where we borrowed trillions from around the world, and that isn’t a real economy. Now we can’t pay the bills and the assets that we used to secure the loans are going down. We now have to build a real economy and it won’t be easy - a lot of companies will go under and jobs will be lost. It has to happen because we have to go back to a sane economy. A economy where we save money and make stuff.

Perhaps the best part is that he isn’t a short term person - he thinks for the long term. He sees the current commodity prices declining because everyone is selling everything to settle up their margin debt - it is asset deleveraging - but these are short term pressures. Long term, he sees the commodities coming back and thinks this is a time to be a buyer, but just not one who uses leverage. Amen! He is bearish the USD and thinks it will fall like a stone. The next step is a major run on the dollar.

We have manufactured our way into becoming the wealthiest nation in the world and now we have consumed our way into bankruptcy. I think Peter Schiff is an older version of me! (WATCH THE VIDEO!) The other pundits are absolutely clueless!

I decided to go check and see if I could find out if he has a blog or website. On his Company site (he is President of Euro Pacific Capital) he posts an commentary every Friday. The latest one is titled, “The Truth About Bailouts.“

Comments

[raising4dau...:]

Peter Schiff is a wise man. I read his book Crash Proof and although I scales back on my equity holdings, I failed to take his full advice and my failure has cost me plenty.

If Obama had any stones, he'd install Peter Schiff at Treasury instead of Gleithner, another in a long line of traditional central bankers.

2008 Nov 23 12:16 PM

[Steven Hansen:]

the problem in life is always the timing. most of us realize what is happening to this economy, but not when we will see it happen. the economy is like a chess game, there are moves and counter moves - and then toss in a few unexpected events. what economic stimulus the government initiates will temporarily prevent economic collapse and re-birth.

2008 Nov 24 12:32 AM

[Fabien Hug:]

Yes it is really worrisome to look at that video. His opponents are and look so stupid and they are on national TV giving financial advice. It really drove me nuts. Stein is the only one who tries to come with rational arguments and a discussion (he is so always naive and optimist).

2008 Nov 24 09:57 PM