Game Over... US stock bubble has already popped, Peter Schiff tells Boom Bust
The Federal Reserve plans to inject $60 billion per month into the US economy which is showing signs of slowdown. It is reported to be preparing a rate cut next week but still claims that nothing is wrong with the system.
“Just ignore what they say and look at what they do,” Peter Schiff of Euro Pacific Capital tells Boom Bust. “They are trying desperately to keep the air from coming out of this bubble but it’s not going to work,” he said, explaining that “The bubble has already popped.”
According to Schiff, “the only question is how fast is that air going to come out and when the market is going to figure out that the game is over, understand what the Fed has been doing, and the true nature of this bubble economy…”
Schiff notes that the rate cut is a “desperate attempt to keep the air from coming out of the bubble, to maintain false consumer confidence.”
Consumers are confident the economy is a disaster, he says, adding that they don’t have any money, they have lousy jobs, no savings, and are loaded down with debt.
“But, as long as they keep on borrowing money to buy stuff that they can’t afford with money they don’t have, for some reason they remain optimistic…” The Fed plays into this, Schiff says.
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