Schiff predicted financial crisis two years ago, Ridiculed
In 2006 and throughout 2007 former Ron Paul adviser Peter Schiff consistently warned the world of the looming financial crisis we are now experiencing, while pundits and media outlets constantly ridiculed him and his ideas. Neither Hank Paulson, George Bush, nor Ben Bernake could see the financial crisis looming two years ago, but Schiff stood his ground amid insults and now has comes out on top.
“It might be a big year (2008), a year of big losses,” Schiff said. “We will see the sub-prime mortgage type scenario fold out in other asset classes such as bonds back by auto-loans, credit card debt and more…because the people who own all this debt are going to lose a lot of money.”
Schiff, who is now gaining popularity in the media due to his predictions coming true, ties most of the current financial crisis to an inflated dollar (caused by artificially raised interest rates by the Fed) and the government regulated financial system. He argues the United States needs to stop borrowing money, cut back on consumer spending and instead save and invest the money.
Schiff fears the government bailouts of major banking institutions will sink the US further into financial oblivian. This comes at a time when the US government recently loaned GM and Chrysler billions fearing further economic collapse.
Comments
By Dan Posey on November 16th, 2008 at 10:44 pm
wow, just wow.
By Jens Kjaer Sorensen on December 21st, 2008 at 10:52 am
He was not the only one…
I warned that a housing bubble was being created in September 2004.
In my masters thesis from March 2006 I predicted that the housing bubble would burst due to higher interest rates. A credit contraction would lead to a credit crisis, financial crisis and international recession, since the housing bubble was not only American but international for the first time in economic history.
Read more:
http://www.jensks.com