Peter Schiff is not nostradamus
filed in Tech Stuff on Oct.13, 2008
Watch Peter Schiff from Euro Pacific Capital as he schools Art Laffer on the economy:
Check out some of the other videos from Peter Schiff. This guy was an advisor to Ron Paul during his run for the Republican nomination. He’s not looking quite so crazy now, is he?
Its really interesting how desperate people are when they’re trying to defend a bubble right before it bursts. They will say ANYTHING to prove that the bubble will keep going.
Bubbles always burst. Thats what bubbles do. The housing bubble in Australia will surely burst like it has in the US; houses cannot stay this unaffordable for much longer.
I’m hanging onto my savings for now, at least.
October 20th, 2008 on 7:27 pm
It’s nice to hear someone with their head screwed on. He says what I’ve been saying for a long time now. I am not an economist but I have thought that the US economy was in trouble for the last few years as you can’t just keep borrowing money from the world, because at some point the world will realise you have no ability to pay it back, and as soon as that happens the house of cards collapses.
In Australia we are lucky in that we have lots of resources to pay for our otherwise extragavent lifestyles.
I love how Art Laffer thinks that stock values and housing prices actually equal wealth. They are only worth anything when you actually sell them, until then it’s only potential wealth. So long as you have any amount of mortgage, your house is a liability, not an asset, as many US home owners have discovered when they can’t sell their house to pay off their overpriced mortgage!
October 22nd, 2008 on 1:50 pm
Dead right. A house is a liability unless it is cash flow positive - ie, you are renting it out for more than it costs you.