Credit Crunch Forecaster a YouTube Sensation

For anyone who hasn’t watched this interview they really should. I posted a thread on the subject not long back and I was mighty impressed with Schiff’s prediction based on fundamental economic realities.

Peter was right on credit crunch

Economist WATCH the president of the brokerage firm Euro Pacific Capital predict the credit crunch before it happened. It has become a YouTube sensation.

“This is not just a financial crisis its a major economic collapse”

US Fed Chairman has finally admitted he got it all wrong:

I misread subprime crisis: Bernanke

November 24, 2008 – 8:53AM
US Federal Reserve chairman Ben Bernanke acknowledges he was wrong in believing that there would be limited fallout to financial markets from risky mortgages that soured after the housing market’s collapse.
”I and others were mistaken early on in saying that the subprime crisis would be contained,” Bernanke says in an article in the December 1 issue of The New Yorker magazine.
”The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict,” he said in the piece titled ”Anatomy of a Meltdown.’

Peter Schiff, however,  is incredibly insightful but nobody wanted to listen His warning in 2006: “This is not just a financial crisis for the US its an major economic collapse”.  Take time to watch this relatively short clip and you’ll see why this guy is so impressive.
Peter Schiff – Fast Money Interview
The warning reminds me of a recent post Australians going broke in record numbers
The question now is, how will we fare?

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8 Responses

  1. Prescient!

  2. It’s amazing how many commentators basically laughed at him as though he was crazy. Yet, his understanding of economic reality vs financial engineering is incredibly sound, in my opinion.

  3. The frog in heating water analogy is a good gauge for observing human reactions to creeping, cumulative peril.
    The pill is usually too bitter to be swallowed, & is thus easier ignored until it can no longer be avoided.

    It may well prove to be our sentient species’ fatal flaw.

  4. Toiletboss

    “The frog in heating water analogy is a good gauge for observing human reactions to creeping, cumulative peril.”

    In fact, it’s probably the best analogy

  5. Amen to that.

    Nihilism is a realistic outlook if you don’t have offspring, I do.
    Perhaps ignorance really is bliss, but even if it is you can’t escape from the fact that ignorance deepens & accelerates most of our earthbound trials.

  6. He makes an interesting comment, “arecession should not be resisted, it should be embraced….”

  7. Not good news!

    Japan’s economy shrinks most in 35 years
    http://business.smh.com.au/business/world-business/japans-economy-shrinks-most-in-35-years-20090216-88kl.html
    Japan’s economy shrank 3.3% in the fourth quarter, the biggest drop since 1974 and further confirmation that the world’s second-biggest economy is in a severe recession as the global economic crisis deepens.

  8. James of North Melbourne, on February 16th, 2009 at 9:46 am Said:

    He makes an interesting comment, “arecession should not be resisted, it should be embraced….”

    James, the stimulus can only, and hopefully provide a cushion, especially where jobs are concerned, but there’s no doubt our economy will shrink. We’ve had such a long period of expansion and the system needs to reach a point where a sustainable balance is reached.

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