December 30, 2010

Home Prices Are Still Too High.

Most economists concede that a lasting general recovery is unlikely without a recovery in the housing market. A marked increase in defaults and foreclosures from today's already elevated levels could produce losses that overwhelm banks and trigger another, deeper financial crisis. Study after study has shown that defaults go up when falling prices put mortgage holders "underwater." As a result, the trajectory of home prices has tremendous economic significance.

Earlier this year market observers breathed easier when national prices stabilized. But the "robo-signing"-induced slowdown in the foreclosure market, the recent upward spike in home mortgage rates, and third quarter 2010 declines in the Standard & Poor's Case–Shiller home-price index—including very bad October numbers reported this week—have sparked concerns that a "double dip" in home prices is probable. A longer-term view of home price trends should sharply magnify this fear.

Even those economists worried about renewed price dips would be unlikely to believe that the vicious contractions of 2007 and 2008 (where prices fell about 30% nationally in just two years) could return. But they underestimate how distorted the market had become and how little it has since normalized.

By all accounts, the home price boom that began in January 1998, when the previous 1989 peak was finally surpassed, and topped out in June 2006 was extraordinary. The 173% gain in the Case-Shiller 10-City Index (the only monthly data metric that predates the year 2000) in those nine years averaged an eye-popping 19.2% per year. As we know now, those gains had very little to do with market fundamentals, and everything to do with distortionary government policies that mandated loans to marginal borrowers, and set off a national mania for real-estate wealth and a torrent of temporarily easy credit.

If we assume the bubble was artificial, we can instead imagine that home prices should have followed a more traditional path during that time. In stock-market terms, prices should have followed a trend line. When you do these extrapolations (see lower line in the nearby chart), a sobering picture emerges. In his book "Irrational Exuberance," Yale economist Robert Shiller (co-creator of the Case-Shiller indices along with economists Karl Case and Allan Weiss), determined that in the 100 years between 1900 and 2000, home prices in the U.S. increased an average 3.35% per year, just a tad above the average rate of inflation. This period includes the Great Depression when home prices sank significantly, but it also includes the frothy postwar years of the 1950s and '60s, as well as the strong market of the early-to-mid 1980s, and the surge in the late '90s.

In January 1998 the 10-City Index was at 82.7. If home prices had followed the 3.35% annual 100 year trend line, then the index would have arrived at 126.7 in October 2010. This week, Case-Shiller announced that figure to be 159.0. This would suggest that the index would need to decline an additional 20.3% from current levels just to get back to the trend line.

How has the market found the strength to stop its descent? No one is making the case that fundamentals have improved. Instead, there is widespread agreement that government intervention stopped the free fall. The home buyer's tax credit, record low interest rates, government mortgage-assistance programs, and the increased presence of Fannie Mae, Freddie Mac and the Federal Housing Administration in the mortgage-buying business have, for now, put something of a floor under house prices. Without these artificial props, prices would have likely continued to fall.

Where would prices go if these props were removed? Given the current conditions in the real-estate market, with bloated inventories, 9.8% unemployment, a dysfunctional mortgage industry and shattered illusions of real-estate riches, does it makes sense that prices should simply fall back to the trend line? I would argue that they should overshoot on the downside.

With a bleak economic prospect stretching far out into the future, I feel that a 10% dip below the 100-year trend line is a reasonable expectation within the next five years, particularly if mortgage rates rise to more typical levels of 6%. That would put the index at 114.02, or prices 28.3% below where we are now. Even a 5% dip would put us at 120.36, or 24.32% below current prices. If rates stay low, price dips may be less severe, but inflation will be higher.

From my perspective, homes are still overvalued not just because of these long-term price trends, but from a sober analysis of the current economy. The country is overly indebted, savings-depleted and underemployed. Without government guarantees no private lenders would be active in the mortgage market, and without ridiculously low interest rates from the Federal Reserve any available credit would cost home buyers much more. These are not conditions that inspire confidence for a recovery in prices.

In trying to maintain artificial prices, government policies are keeping new buyers from entering the market, exposing taxpayers to untold trillions in liabilities and delaying a real recovery. We should recognize this reality and not pin our hopes on a return to price normalcy that never was that normal to begin with.

Related stocks: Lennar Corporation (NYSE:LEN) , D.R. Horton, Inc. (NYSE:DHI) , PulteGroup, Inc. (NYSE:PHM) , Toll Brothers, Inc. (NYSE:TOL) , Bank of America Corporation (NYSE:BAC) , Citigroup Inc. (NYSE:C) , Wells Fargo & Company (NYSE:WFC) , Morgan Stanley (NYSE:MS), Fifth Third Bancorp (NASDAQ:FITB), SunTrust Banks, Inc. (NYSE:STI), iShares Dow Jones US Home Const. (ETF) (NYSE:ITB)

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.

December 29, 2010

CNBC Video: Muni Meltdown Is Coming



Related: Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)

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.

December 28, 2010

Latest Video Market Update: Chinese Rate Hike


Latest video market update.

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), United States Oil Fund LP (ETF) (NYSE:USO), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI)

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.

Muni Bond Crisis is Coming

“As interest rates rise, it’s not only going to be the states that can’t pay, but the federal government that can’t pay.

The money they print to bail out these states will render the bonds worth a lot less. You lose either way. Either you lose because the states default and you don’t get your money back or you lose because the government bails them out and you get your money back, but you can’t buy anything with it.”


in BullSource.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.

December 22, 2010

US Economic Outlook For 2011


Latest video market update.

Related: Market Vectors Gold Miners ETF (NYSE:GDX), SPDR Gold Trust (ETF) (NYSE:GLD), iShares Silver Trust (ETF) (NYSE:SLV), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF), PowerShares DB Agriculture Fund (NYSE:DBA), Powershares DB Base Metals Fund (ETF) (NYSE:DBB), United States Oil Fund LP (ETF) (NYSE:USO), iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), ProShares UltraShort S&P500 (ETF) (NYSE:SDS)


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.

December 21, 2010

Avoid Long Term Bonds, Treasuries And Municipal Bonds.

"Avoid any kind of long term bonds, avoid treasuries, and avoid municipal bonds."

in PRWeb

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

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.

December 20, 2010

Three Investment Themes for 2011

1) US dollar demise: Schiff does not see much safety in the US dollar. Recently we saw the long end of rates rising because the bond vigilantes are coming out of a coma as they realize the Fed is out of ammunition here. All the Fed can do is try to boost the economy artificially with cheap money; they brought interest rates down to zero, they couldn't do anything else so they tried quantitative easing to try to get the long rates to go down but instead they shot up (see 30 Year T-Bond rates) -- it was a complete failure and now much higher interest rates are in order (The Fed would argue the rates are up because the outlook for the economy is more favorable). In response all the US will do is keep borrowing and printing more money which is not good for the economy and not good for the dollar. Schiff thinks the bear market in bonds is finally here with legs to it and that foreigners will not want to keep dollars as the Fed prints cash. Schiff says it is not just a dollar collapse, it is a bond collapse too; "avoid any kind of long term bonds, avoid treasuries, and avoid municipal bonds."

2) Buy emerging markets and foreign currencies: Stay invested in companies that are exposed to the growth that is occurring outside the USA; you want to look at the new emerging consumers, the people that have been saving their money and producing -- those are the consumers of the future. You have to stay with businesses that are going to benefit from this change in global wealth as the world moves away from a US centric model towards other nations. Schiff is focusing on Asia where people work hard, are producing and have savings. You want to invest around the world where there is legitimate economic growth based on savings, under consumption, and capital investment so you get a lot of value and you stay out of the US dollar - because when you are investing abroad not only do you get the growth of those stocks you get protection; foreign stocks with foreign earnings offers you protection from US dollars demise. Schiff is also focusing on countries that have a lot of natural resources that they are able to export to take advantage of the strength in other markets.

3) Buy precious metals and commodities: The Fed will print a lot of money to slow the rise of interest rates and that will be terrible for the dollar so you will want to own the precious metals - stay with gold, stay with silver.

Related: Market Vectors Gold Miners ETF (NYSE:GDX), SPDR Gold Trust (ETF) (NYSE:GLD), iShares Silver Trust (ETF) (NYSE:SLV), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF), PowerShares DB Agriculture Fund (NYSE:DBA), Powershares DB Base Metals Fund (ETF) (NYSE:DBB), United States Oil Fund LP (ETF) (NYSE:USO), iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM), iShares MSCI Brazil Index (ETF) (NYSE:EWZ), iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI)

in PrWeb.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.

December 17, 2010

Pre-holiday cheer is certainly evident in the financial markets

Pre-holiday cheer is certainly evident in the financial markets. The overwhelming consensus is that the Congressional agreement to not raise taxes while extending hundreds of billions in new stimulus will finally allow the recovery to take hold. The good feelings are underscored by less-than-awful employment reports and modest slowdowns in foreclosures. Another point of optimism is the continued buoyancy of the US dollar, which has weakened over the past few months, but has not collapsed.

However, I believe the dollar's survival remains tenuous and highly dependent on factors outside of the control of US policymakers. As I see it, the dollar is caught between four major forces: American debt levels, weakness of the euro, underlying strength of the yuan and, lastly, threats to its privileged international reserve status.

In 2010, the major collapse of the US dollar, which many of us expected to see, did not materialize. Indeed, the dollar experienced periods of relative strength, due largely to an absence of apparent domestic inflation and concerns not just about the value of the euro, but its continued survival. In recent weeks, there have been some signs of economic recovery in the United States, of rising inflation in China, and of increasing concern about the euro. As a result, the dollar is finishing the year with some wind in its sails.

For now, the markets seemed convinced that the trillions of dollars injected into the economy by the Fed and the Administration will not be inflationary. I suspect this illogical consensus has in no small part been made possible by the government's success in disguising the real level of consumer price inflation. However, the level of government debt continues to accelerate, promising serious problems ahead.

This reality was made clear by the recently negotiated tax/stimulus package. The deal contained absolutely no commitment on the part of either Republicans or Democrats to tackle the country's staggering debt problems. But, in the short term, it may help to boost morale; and, in the current environment, the short term is the only term that seems to matter.

I believe the European picture is a cause for deep concern. With the recent warnings of further credit downgrades, it now appears the European debt contagion is spreading. Even as anti-austerity riots are spreading on the streets of Athens, the debt scene is shifting to Spain. Recent reports indicate that in 2011, Spain needs to find financing for €171 billion in public debt, local authorities need an additional €28 billion, and Spanish banks need another €91 billion. This adds up to a total of approximately €290 billion, or some 28 percent of GDP. This is on top of a Spanish national debt that currently stands at 53% of GDP, and a marked increase over the 2010 deficit of 11.2% of GDP. These types of figures are already eliciting calls for an increase in the €440 billion eurozone rescue fund.

Meanwhile, the German economy continues to exhibit strong growth, which may soon demand a hike in euro interest rates. Periphery euro states would find this extremely threatening. It may even prompt a split between strong and weak and the creation of a 'two speed' eurozone. Fundamental disagreements between European Central Bank (ECB) chairman Jean-Claude Trichet and German Chancellor Angela Merkel are creating further political uncertainty.

These factors may have caused a major flight of capital out of the euro and into the US dollar, blunting what should have been a much rougher period for the dollar. I believe that euro weakness is thwarting Fed Chairman Bernanke's plan: devalue the dollar in order to inflate the economy and partially erode the Treasury's debt.

Meanwhile, in Asia, China still pegs its yuan to the dollar, allowing only small increases in its value. To maintain the relative valuations, China must purchase US dollars on the open market. By absorbing the excess liquidity created by the Fed, China is importing American inflation. Figures released earlier this week reveal the danger. It may take time, but the pressures of domestic inflation may finally persuade China to revalue in 2011. A revalued yuan will enable China to better afford the commodities it needs to sustain its growing economy. It will also cause a precipitous drop in living standards in the US as we are forced to live with the result of our own inflation.

But our problems will not end there. China likely will seek conditions in return for agreeing to revalue. China may demand that the G-20 accept its proposal to remove the US dollar from its privileged role as the world's reserve currency. From my vantage point, this would render the dollar a terminal patient.

Forecasting the dollar's short-term relative value is an extremely difficult exercise. Sadly, logic holds little sway in the current marketplace. However, over the longer term, I believe dollar weakness will undermine the market - just as we saw with the dot-coms and real estate. At some point, fundamentals will be felt.

Related: iShares Dow Jones US Real Estate (ETF) (NYSE:IYR) , iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) , iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM) , iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

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.

December 16, 2010

Video Market Update: Commodities, Chinese Inflation & Interest Rates.


Latest video market update.

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) , iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) , iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI)

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.

December 14, 2010

Washington Displays The Kind Of “Bipartisanship” That Will Bankrupt Our Country

This week Washington displayed the kind of “bipartisanship” that will bankrupt our country and wreck our currency. Coming at a time when both parties say they want to address our long-term fiscal imbalances, the compromise extension of the Bush era tax cuts should be a wake-up call to anyone who somehow expected the American leadership to ever have an “adult conversation” about the country’s long term economic health.

The administration and Congress are prepared to take the bold political move of not raising some taxes while significantly lowering others and greatly expanding Federal benefits. The entire cost of the $900 billion package will be financed entirely by adding to the national debt. Talk about tough love. While other countries consider ways to live within their means, Washington is intent on devising ever more creative ways to delay the day of reckoning.

While Democrats wanted more government spending,they were unwilling to vote for broad-based middle class tax increases to pay for it. Instead they want what Democrats have always wanted: higher taxes on the “rich.” Republicans want lower taxes, but as has become typical, they were unwilling to cut government spending to enable it.By running up the deficit both sides get what they want without any political sacrifice.Sure, they break their campaign promise to cut the deficit, but the political fallout that results will be far less costly than voting for the tax hikes or spending cuts.

In truth however, there are no real tax cuts in this proposal. The true burden of government is not measured by how much it taxes but how much it spends. Since this deal ensures that government will be more expensive next year than it was this year, American citizens will have to shoulder the added cost. Just because Congress has decided to deliver the bill with debt rather than current taxes does not mean that the spending will not be paid for. The only thing the plan accomplishes is to alter the means by which government spending is financed.

If we had a truly independent Federal Reserve (one that was not willing to buy all the excess government debt) these larger deficits would make much more of an immediate and discernable impact on the financial markets and the economy. A glut of government debt should lead to much higher interest rates. Higher government borrowing also tends to divert savings and investment capital that would otherwise flow into the jobs-creating private sector. However, with the Fed engaging in quantitative easing, Ben Bernanke’s “Sixty Minutes” denial notwithstanding, the money needed to buy the additional debt is simply printed. As such,the nasty side effects have been avoided in the short term. Instead we are set up for more inflation and a weaker dollar down the road.

Those who understand the implications of the “inflation tax” have already moved savings and investments out of U.S. dollars,expecting that the value of their savings and investments would diminish as a result of the inflation the Fed creates. In addition, working Americans will see the real values of their paychecks fall, as consumer price increases outpace the gains in after tax incomes.

As a result, this plan will do nothing to help our economy. The benefits of holding taxes low will be more than mitigated by damage done by larger deficits. In fact, despite the Fed’s efforts to artificially suppress interest rates, the fear of larger deficits is already driving rates up. Many on Wall Street have jumped to the erroneous conclusion that rates are rising because this new fiscal stimulus will spur economic growth, which in turn will make further quantitative easing unnecessary. In truth, the only thing this plan will stimulate is larger deficits, meaning the Fed will be forced to do more, not less QE in an effort to restrain rates.

It is the fear of additional QE that has really spooked the bond market. Sure Fed buying might initially boost treasury prices, but as the additional dollars created to buy the bonds work their way into the economy, rising consumer prices erode the present value of the bonds.

Unfortunately, nothing in the plan addresses the fundamental economic imbalances that underlie our economy and that brought us to the brink of ruin in the first place. What we really need are massive cuts in government spending so we can have true tax relief. In addition, we need to remove the government-imposed barriers which make our economy uncompetitive, and which are preventing market forces from correcting the imbalances. By expanding government and increasing debt, the plan puts us farther than we have ever been from a real recovery.

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.

Market Update: Commodities, US Dollar, Government Bonds


Schiff talks about the strength in commodities, "The CRB closed at a 2 year high".

Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), PowerShares DB US Dollar Index Bearish (NYSE:UDN) , iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)

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.

December 10, 2010

Video: The Dollar Is Now Collapsing


Related: PowerShares DB US Dollar Index Bullish (NYSE:UUP), PowerShares DB US Dollar Index Bearish (NYSE:UDN) , ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) and iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT)

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.

December 8, 2010

The Payroll Tax Cut Will Hurt The Economy.

“The payroll tax cut will hurt the economy as the lost revenue will simply be borrowed instead. The additional borrowing to finance larger deficits will hurt the economy more then the offsetting benefit of lower taxes.”

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.

December 7, 2010

Inflation Vs. Deflation Debate.


from Yahoo Finance TECH Ticker

Related: Market Vectors Gold Miners ETF (NYSE:GDX), United States Oil Fund LP (ETF) (NYSE:USO), iShares Silver Trust (ETF) (NYSE:SLV)

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.

Failed Policies.

As I have been saying for years, the US economy will not create jobs as long as the Fed keeps interest rates artificially low, and Congress keeps stimulating spending and consumer debt, punishing employers with mandates, regulations, and taxes, crowding out private investment with massive government borrowing, and preventing market forces from restructuring our out-of-balance economy.

As new data comes in that continues to bolster my hypothesis, the politicians in Washington continue to follow the wrong diagnosis, while ignoring evidence that their policy prescription has failed. Rather than reassessing the effectiveness of their remedy, they are merely prescribing more of the same.

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.

We Need Market Forces Disciplining The Credit Markets

“We have to have market forces disciplining the credit markets. We can’t have the Fed coming to the rescue with a printing press every time somebody gets in trouble.”

Related: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) , iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT) , PowerShares DB US Dollar Index Bearish (NYSE:UDN), PowerShares DB US Dollar Index Bullish (NYSE:UUP)

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.

December 6, 2010

Market Update: Gold & Silver


Latest video market update.

Related stocks and ETFs: SPDR Gold Trust (ETF) (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Newmont Mining Corporation (NYSE:NEM), AngloGold Ashanti Limited (ADR) (NYSE:AU), Harmony Gold Mining Co. (ADR) (NYSE:HMY), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Barrick Gold Corporation (USA) (NYSE:ABX), NovaGold Resources Inc. (USA) (AMEX:NG)

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.

December 3, 2010

Gold Rally Seems To Have Consolidated Around 1,350. Next Wave Ahead.

Gold broke the $1,400/oz milestone just about two months after breaking $1,300, capping a spectacular rally that began in July. There has not been an issue of the Gold Report so far in which I haven't been able to report gold breaking a new nominal record.

The rally seems to have consolidated around $1,350 for the time being, which is a healthy development and a chance to get in before the next wave of Bernanke bucks make their way through the markets.

in Europac.net

Related stocks and ETFs: SPDR Gold Trust (ETF) (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Newmont Mining Corporation (NYSE:NEM), AngloGold Ashanti Limited (ADR) (NYSE:AU), Harmony Gold Mining Co. (ADR) (NYSE:HMY), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Barrick Gold Corporation (USA) (NYSE:ABX), NovaGold Resources Inc. (USA) (AMEX:NG)

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.

December 2, 2010

Europe, Bailouts And Debt

“Following in our footsteps off the edge of an economic cliff would be a huge mistake. Europe is already making their share of mistakes as no nation should get a bailout. Debt should be restructured with bondholders taking the hits. Also government spending and borrowing should be reduced.”

in CNBC

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.

December 1, 2010

Europe Is Making Some Very Bad Decisions.

"Europe is making some very bad decisions with respect to the whole region and the currency. They should not have bailed out Greece and Ireland, they should have allowed them to restructure their debt, and allowed their bondholders to take losses. Countries would now want to go into debt because they want those bailouts and the countries that are responsible get stuck with the bill."

in Reuters, today

Related: PowerShares DB US Dollar Index Bearish (NYSE:UDN), PowerShares DB US Dollar Index Bullish (NYSE:UUP)

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.