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

The Bubble (Video)

  by    0   0

Everybody knows that the 2008 financial crisis was caused by “deregulation” and “greed,” right?

Except that it wasn’t.

A film titled The Bubble offers a non-partisan, critical examination of the policies and events that led to the biggest crash since World War II. Produced by Jimmy Morrison and co-written by Tom Woods, the film features a who’s-who of economic and financial experts including Jim Rogers, Jim Grant, Marc Farber, Doug Casey, Gene Epstein, David Stockman, Robert Murphy and Peter Schiff.

After the New York premiere of the film, Fox Business’ Liz Claman moderated a discussion with Gene Epstein, Jim Grant, Peter Schiff, David Tice, and Tom Woods. They talk about how they knew the crisis was coming and how it applies to today.

A number of people predicted the 2008 meltdown. Morrison said he realized it was important to ask these people what they saw that others didn’t. Claman said the film was “the best encapsulation of what happened, why it happened, but more importantly, who saw it coming and who did not.”

Claman and Peter went to high school together. She describes how they got together in 2005 and Peter spent an hour explaining to her why the financial system was going to completely implode. How did Peter know?

Peter described his interaction with people in the mortgage industry in the early 00’s and explained how the seeds of the crisis were planted then. It was rooted in Greenspan’s policies after the stock market bubble popped in 2000. Peter said had he not dropped interest rates to 1%, that correction would have been a lot bigger.

I could see where it was going. I could see what was happening in the housing market, and I knew that it was distorting the economy in ways that were much greater than the dot-com bubble did, because I knew we were building an entire economy based on home equity and home equity extractions, and people were spending money they didn’t have and buying stuff they couldn’t afford. So, this whole thing was a big bubble, and I could see the way it was being financed. And you know it’s only a matter of time before the whole thing implodes.”

Woods noted that in putting the script together, he thought it was imperative to highlight the mainstream reaction to Peter’s prediction.

We had to have Peter being not just criticized, but literally laughed at. Becuase at that moment, Peter couldn’t realize how awesome that moment is with the future, because these SOBs laughed at you and you were so right. And then almost nobody apologized to you later. I mean, it tells you something about these people.”

This isn’t just a jaunt through the past. What happened during the runup to 2008 has relevance today. The central banks are engaging in the same policies. As Claman put it, “We’ve rebuilt an entire system instead of fixing the cracked foundation.”

Peter explained how the policies that led to the housing bubble are being repeated today. The housing bubble was blown up by Alan Greenspan lowering rates to 1% and leaving them there for a couple of years and then slowing raising them back up.

Now, think about what’s in store for us. Because after that bubble popped, instead of learning their lessons after having blown two bubbles, first in the stock market and then in the real estate market, instead of admitting that they lit the fires that they’re trying to put out, the Federal Reserve didn’t lower rates to 1%, they lowered them to zero. And they left them there for six, seven years. And then they took three more years to get back to two, and they’re already going back down. So, if we created such a big bubble with 1% for a couple of years that resulted in the ’08 financial crisis, what is going to result from this?”

 

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every 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: Nobody Should Be Taking Credit for the US Economy

Last week, Peter Schiff gave a speech at the Orlando Money Show and made the case that all the hype about the greatest economy in history is just that – hype. Nobody should be taking credit for the economy. We should be asking who is to blame.

READ MORE →

Peter Schiff on the Ultimate Gold Panel

During the Vancouver Resource Investment Conference, Peter Schiff joined Frank Holmes (US Global), Rick Rule (Sprott US), and Grant Williams (Vulpes Investment Management) on the “Ultimate Gold Panel. Daniela Cambone moderated the discussion. Gold charted its best year since 2010 last year. The price increased by 18.4% in dollar terms. The yellow metal also reached record highs […]

READ MORE →

Rick Rule: Gold Is Insurance and You Want to Have Insurance

Rick Rule talked with David Lin of Kitco News at the Vancouver Resource Investment Conference. Rule is the senior managing director at Sprott Inc., and he’s bullish on gold. During this discussion, Rule explains why, touching on a range of subjects including the Federal Reserve, the trade war, the US dollar, the bond market and […]

READ MORE →

Peter Schiff: This Is Going to End Very Poorly

On Nov. 18, Peter Schiff appeared on RT Boom Bust to talk stock markets, trade war and Federal Reserve policy. He said that right now the Fed is doing a good job stimulating the bubbles, but ultimately, it’s going to end very poorly. On the trade war front, there seems to be a lot of […]

READ MORE →

Peter Schiff: It’s the Fed’s Fault!

Jerome Powell lectured Congress about the national debt last week, calling it unsustainable. The Federal Reserve chairman is concerned. He admitted that with interest rates already close to zero, the central bank has very little room to cut rates in the event of an economic downturn. Peter Schiff appeared on the Claman Countdown, along with […]

READ MORE →

Comments are closed.

Call Now