Peter Schiff Says Wild Ride on Wall Street Will Continue Until Fed Admits the Truth (Video)

Peter Schiff discussed the miserable start for Wall Street in 2016 on Newsmax Prime. Peter said that until the Fed admits the truth about the economy, there is really nothing to stop stocks from continuing on a downward trajectory:

There really is nothing to support this market until the Fed acknowledges how weak the economy really is and admits that it’s not going to be raising rates, but lowering them back down to zero and launching another round of quantitative easing. But absent that, I really don’t see what prevents the market from continuing to decline. “

Peter went on to say he believes the Fed will eventually step in and save the market by lowering rates and launching another round of quantitative easing, but it will sacrifice the dollar in the process.

Highlights from the interview:

“We are already in or rapidly heading into a recession. Corporate earnings are already falling. Stocks are way overvalued, and companies are way over-leveraged.”

“A former Fed official was on television earlier today basically admitting that the Federal Reserve engineered this stock market rally and there is nothing real behind it. It was just their attempt to create a phony wealth effect. Well, that phony wealth is going to go away, just like the phony wealth went away in the housing bubble, or the dot-com bubble.”

“We never had a real recovery; we had a Fed-inflated bubble.”

“I do think the fed is going to save the market, but sacrifice the dollar in the process. So the real crisis that is coming is not going to be a repeat of the financial crisis, but something even worse – a dollar crisis and even a sovereign debt crisis.”

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