Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: The Bubble Has Popped; The Economy Is Next (Video)

  by    0   0

After the worst Christmas Eve in the history of the stock market, the Santa Clause rally came late. Markets bounced back in the short trading week after Christmas. The Dow started with a 1,000-plus point gain, then dropped nearly 600 points the next day, before rallying late to close in the green.

The rally had some Wall Street pundits feeling giddy, but in an interview on RT America, Peter Schiff said the bubble has popped and this is exactly the kind of roller coaster ride you expect in a bear market.

We are in a bear market. We had the longest bull market in US history just come to an end, and it doesn’t die easily. So, you’re seeing a lot of volatility. These big up moves, which are typical again in bear markets, are designed to keep the hope alive, so people don’t sell, and you sucker in a few more buyers because they think the bottom is in. And then the next thing you know, the market is trading for new lows. I think this bear market has a long way to go. We’re still much closer to the top than the bottom. And the worst part is not really the bear market, but the economy, which is headed for a worse recession than the one that we now call the Great Recession that we had in ’08 and ’09.”

The host noted that markets are cyclical and asked Peter what exactly changed last fall to drive this sudden downturn on Wall Street.

The only thing that’s changed is the bubble has popped. When Donald Trump was elected, there was a giant bubble, and it got bigger for the first couple of years, or not quite two, that he was president. But now the bubble’s popped and the air is going to come out.  And we’re going to finish the financial crisis that we started in 2008.”

Peter said people want to pinpoint some kind of change that suddenly drove the markets down, but the fact of the matter is the economy has been lousy the entire time.

All the problems that resulted in the ’08 financial crisis have been made worse since that crisis by the very institution – the Federal Reserve – that created the problem in the first place. They created the financial crisis by inflating a housing bubble, by keeping interest rates too low for too long. Well, this time they kept them even lower for even longer. They inflated a far bigger bubble than the one that popped in ’08. And now that this one has popped, it’s going to be followed by a worse crisis and a worse recession, and people have to understand this and prepare for it.”

Peter also talked about the trade war. He said he doesn’t think President Trump understand how China helps prop up the American bubble economy. They buy American debt and they sell Americans products they don’t make themselves. And contrary to what the president wants us to believe, there is no revival in American manufacturing.

Manufacturing is as weak as ever. Our trade deficits are bigger than ever. Our budget deficits are bigger than ever. And so this is not the time to be biting the hands that feed us.”

Ultimately, Trump is going to have to focus on much bigger problems. On top of that, he’s painted himself into a corner. He hung his hat on the “booming” stock market and a “booming” economy.

Well, the stock market boom has gone bust and the economic boom is going to bust next, and then the president is going to have a real hard time.”

Gold IRA Rollover to 401k

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: The Fed Got Everybody Drunk on Cheap Money But the Party Is Over

A lot of people seem to think that if the Fed had just started fighting inflation a little earlier, we wouldn’t have seen the rapidly rising prices that continue today. The mistake, they say, was thinking inflation was transitory. But as Peter Schiff has pointed out, this problem didn’t start last year, or even with […]

READ MORE →

Economist Nouriel Roubini: The Fed Is Going to Wimp Out in the Inflation Fight

Economist Nouriel Roubini says Federal Reserve is going to “wimp out” on the inflation fight and that will lead to a dollar crash. Roubini is the Professor Emeritus at the Stern School of Business, New York University. He recently appeared on Bloomberg Markets and Finance to talk about threats to the global economy. Roubini predicted […]

READ MORE →

Peter Schiff vs. Bart Melek: Is It Time to Buy Gold?

Is now the time to buy gold? Or should we be bearish on the precious metal? Peter Schiff debated TD Securities Global Head of Commodity Markets Strategy Bart Melek on the future of gold prices on CNBC Asia.

READ MORE →

Peter Schiff: Why Shouldn’t You Give Up on Gold and Silver?

A lot of investors wonder about the lack of movement in gold and silver, especially given rampant inflation. Why haven’t we seen a big rally in precious metals as many expected? Why shouldn’t you just give up on gold and silver? Peter Schiff answers these questions in this video.

READ MORE →

Peter Schiff and Brent Johnson Debate: Will the Dollar Rise of Fall in 2022?

Peter Schiff and Santiago Capital CEO Brent Johnson got together on the Rebel Capitalist podcast to debate the trajectory of the dollar in 2022. Johnson is bullish on the dollar. Peter thinks the greenback is going to tank.

READ MORE →

Comments are closed.

Call Now