Tuesday, July 31, 2012

A lot of Bankruptcies in the Financial sector coming

Peter Schiff : It looks like a lot of bankruptcies in the financial sector; more downside in real estate; big cuts in government expenditures; much higher interest rates; much higher rates of personal savings; a big decline in consumption and expenditures. The government will have to spend a lot less and so will individual households. We need a lot more savings; we need a lot more legitimate investment; more production; more exports. None of that is happening right now. We’re doing all the wrong things; we’re making all the underlying conditions worse. And the Fed stimulus is making it possible.
If the Fed acted responsibly, our leaders would have to be responsible too. But the Fed gives them an escape valve—a way to run up bigger deficits and make the problems worse instead of actually dealing with the problems and helping to solve them. - in indexuniverse

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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