January 29, 2010

Leadership And The US Economy

"We need to send a new kind of leader to Washington. A leader who has a track record of seeing our economy for what it is, not for what some hope it to be. Someone with the courage to stand up and let the world know what is coming even when it is vastly unpopular to do so. Not because it is the easy thing to do but because it is hard and because it is right."

in Capitol Watch Blog

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 28, 2010

Latest Market Update

Peter Schiff latest video blog update:

Topics: State Of The Union, Barack Obama, stock market and the US dollar

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 27, 2010

Where Were Bernanke's Critics In 2006?

"Together the two of them (Bernanke and Greenspan) kept interest rates too low, inflated the housing bubble and tried to get consumers to spend too much.

You have these other politicians jumping on the bandwagon now that its popular to bash Bernanke. They didn't say anything about him two or three or four years ago."

in blogs.courant.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 26, 2010

Proprietary Trading Restrictions And Bank Of America - Merrill

"Proprietary trading is how Wall Street makes its money, not brokerage services to help out third parties. Should this be embodied in law it would force Bank of America Corporation (BAC) (and Merrill) to separate because it makes the whole merger detrimental to shareholders."

in CBS MarketWatch

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 25, 2010

Bernanke`s Reappointment: My 7-Year-Old Son Would Be Better

“We’re going to get somebody worse. I don’t like Ben Bernanke because he was too easy and Congress doesn’t like him because he wasn’t easy enough. I would be a much better Fed Chairman than Ben Bernanke...hands down. My 7-year-old son would be better.”

in www.digitaljournal.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 22, 2010

Obama's Bank Plan Is Doomed To Failure

Once again, President Obama completely missed the mark on the causes of and solutions to the financial crisis. In his speech this morning, the President outlined a major initiative to increase regulation of banks. He claims the financial crisis was caused by reckless speculation by greedy bankers in search of quick profits. What he fails to acknowledge is that this behavior was the direct result of the cheap credit supplied by the Federal Reserve and the moral hazard supplied by government regulations and subsidies.

In his efforts to prevent the next financial crisis, the President is focused on the symptoms rather than the disease. Therefore, his attempt to prevent future financial crises is doomed to failure, as the misguided policies that led to the last crisis are preserved while even more damaging policies are added. Current Fed policy is more reckless than before; continued subsidies to the mortgage market and the bailouts for banks are creating even bigger moral hazards; and, as a result, the economy is even more leveraged and more vulnerable to rising interest rates than ever.

The only way to prevent another financial crisis would be to reverse the fiscal and monetary policies that lead to the last crisis, and which now threaten to bring on an ever larger one. However, this Administration seems to lack the brains or the guts to do it.

www.investmentnews.com

Related Stocks: Citigroup (C), Bank Of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 21, 2010

Basic Agenda Of Wall Street Investment Banks

"The Basic agenda of Wall Street investment banks, indeed their raison d'etre, is to sell stocks and keep their corporate clients happy. Remember that and discount the value of their public predictions accordingly."

in The little Book of Bull Moves in Bear Markets

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 20, 2010

Using GDP As A Main Financial Indicator Is Wrong

"Using GDP as the main financial indicator is equivalent to judging a man’s success by the cost of his house, car and wristwatch. These figures merely indicate a level of spending and have nothing to do with earning power."

in Seeking Alpha

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 17, 2010

We Need To Shrink Government

“Well, we need to shrink government. We need to get rid of the politicians that taxed, spent, regulated and printed us into this crisis.”

Schiff went onto state that the US is in a hole and the only way to get out of the current predicament is “real change,” which can happen, says Schiff, if free market principles are introduced such as limited government, individual liberty, low taxes and sound money but “the first step is to change Congress because until we get rid of those crooked politicians we don’t have a chance.”

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 15, 2010

The Lunacy of Government



Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 11, 2010

Fannie Mae, Freddie Mac And The Housing Bubble

“Without the Fannie Mae (FNM) and Freddie Mac (FRE) guarantees and without the low interest rate there never would have been a housing bubble."

in The Hill Blog

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 10, 2010

Video Update: Employment Report And The State Of The US Economy

Peter Schiff`s video blog update on the Employment Report, jobs number and the US economy.


"The real productive jobs are being destroyed"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 8, 2010

Ben Bernanke Has Destroyed Any Credibility He May Have Had Left

It seems that the primary qualification needed by any chairman of the Federal Reserve is the ability to never admit error, no matter how damning the evidence. During his tenure on the job, Alan Greenspan set the standard for implausible deniability. But in a speech last weekend in Atlanta, current chairman Ben Bernanke did the Maestro one better. In a tortured academic dissertation, Bernanke explicitly denied any Fed culpability for inflating the housing bubble and for the financial crisis that began when it burst. Despite his best efforts, no one seemed particularly convinced. By taking such an absurd stand, he has destroyed any credibility he may have had left.

in Resource Investor

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 7, 2010

"We Need Pro-Growth Policies That Cut Taxes"

"We need pro-growth policies that cut taxes, drastically cut government spending, and put an end to the bail-outs and buy-offs that have become business as usual in Washington, D.C.

The problems every American faces today are serious and we need courageous leaders who are willing to fight for what they believe and not accept the status quo because it is the politically expedient path."

in Eyewitness News

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 6, 2010

Ben Bernanke And The Housing Bubble

“He (Bernanke) was completely wrong in his assessment of what created the housing bubble. He basically said that the low interest rates from the Federal Reserve had nothing to do with it. He said it was the proliferation of adjustable rate mortgages or interest-only mortgages.

That’s completely wrong. The only reason that so many people took out adjustable rate mortgages was because they were so much less expensive than the fixed rate mortgages because of the Fed’s low interest rates. You can’t go out there and say that low interest rates had nothing to do with it and then blame it on the mortgage products that only existed because of the low interest rates. How can he not see that?”

in thehill.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 4, 2010

Ben Bernanke, Oil And Silver

Latest Peter Schiff`s video blog update.

"Oil is up over 2 dollars a barrel. We are at about 81.50 USD closing in on 82 dollars per barrel, which is the high for the move. I do believe we will be over 100 dollars per barrel relatively soon."

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

January 3, 2010

A Hell of a Decade

In its recent look back on the first ten years of the century, Time Magazine proclaimed the period to be "the decade from hell." The editors made their case based on what they saw as the signature events of the last ten years, notably the ravages of terrorism, failed wars, and a global financial crisis. Taken together, these factors produced an era that Time is convinced will be remembered as one of the low points in our history.

As the media hates to dwell on the negative, the commentary was rife with notes of optimism about pending recovery. It could hardly be accidental that in the very next issue, Fed Chairman Ben Bernanke was named "Man of the Year" for his supposedly Herculean efforts to keep the economy afloat as we departed the Naughty Aughties. Although Time takes pains that to point out that the "Person of the Year" honor reflects impact rather than adulation, its profile of the Chairman was triumphant.

Even if you believe the "survived the worst/turned the corner" narrative offered by Time, it still should strike anyone as ironic that Chairman Bernanke, a chief architect of the economic problems that surfaced in 2007, should be held in such high esteem.

Apart from its misplaced reverence for the Fed Chairman, I would take issue with Time's entire characterization of what has now become history.

Under no circumstances could the past ten years be described as "the decade from hell." In fact, in terms of economic good fortune, the period shares parallels with the Roaring Twenties. I would describe this as a decade of sin that paved the way to hell.

Yes, we had spectacular problems like September 11th and the invasion of Iraq – which were horrific for those who were directly affected – but for most Americans, it was a time of unexpected wealth and unearned prosperity. Up to the days of the stock market crash, the economics of the decade will be remembered for cash-out refinancing for millions of homeowners, no-doc liar loans, no-money-down car purchases, eight-figure Wall Street bonuses, cheap Chinese imports, and trample-to-death holiday sales. In other words, the decade now closing gave us the biggest and most irresponsible spending orgy in U.S. history. The past decade was the party; the one ahead will be the hangover.

The fact that Time completely ignored these issues shows how poorly the mainstream media understands the forces bearing down on our economy. Yes, they were able to identify some of the adverse consequences we experienced this decade. That's the easy part. But as far as seeing the causes behind the effects, they haven't a clue. As a result, Time has no ability to see the underlying pattern and will happily encourage our leaders to repeat the mistakes of the past on a grander scale.

For now, Congress and the President remain as clueless as Time. To show its resolve to 'get to the bottom of things,' the Obama Administration has impaneled a commission to investigate the causes of the financial crisis. Do not expect the proceedings, which are just getting underway, to come up with anything but the most politically useful explanations.

Blame will be laid at the feet of 'ineffective regulators' who failed to 'get tough' with industry, banks, and corporate leaders who held the 'public good' hostage to their 'personal greed.' There is no hope that anyone who actually saw the crisis coming will actually be asked to testify. If they called me, I would be happy to give them an earful. Unfortunately, the only way my views will ever be heard by the powers-that-be is if I am elected to the Senate – which is exactly what I plan to do next fall in my home state of Connecticut.

My sincere hope for the coming decade is that I can help our leaders see what Time cannot: we need to stop committing the economic sins that are leading us to hell, so that our stay down there will be as brief as possible. We need everyone to stop spending more than they earn. That is true not just for individuals, but for our government as well. Just this week, the Treasury Department removed its internal caps on bailout funds to Fannie Mae and Freddie Mac. Meanwhile, another bailout was proffered to ailing GMAC. If we continue the same bad behavior, it might not just be one decade from hell, but several.

However, if we can confess our sins, and vow to reform our ways, perhaps this will merely be a decade in purgatory. Perhaps we can turn it into the decade of hope, hard work, individual liberty, savings, production, investment, sound money, de-regulation, exports, budget surpluses, capitalism, limited government, and respect for the Constitution. These traits will harden us to withstand the fallout from our reckless past.

As of yet, our troubles continue to snowball – and I don't like a snowball's chances if we have a real decade from hell.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

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