Sunday, June 23, 2013

The Fed Is Creating an Economic Illusion: Peter Schiff

The dirty little secret of finance is that everyone is making it up on the fly. Economics is a social science focused on human behaviors. People have a habit of behaving in ways they "shouldn't." Other scientific pursuits have tangible answers where economics has a collection of best guesses. The speed of light is a constant but the velocity of money is subject to the collective whims irrational masses.
Related: Bond Rate Rally Crushes Equities
For the better part of six years the FOMC has been doing its best to give away money. On an institutional, level money is essentially free. The notion driving this Federal Reserve largesse was the idea that free money would get spent, thus stimulating the economy. There should be inflation right now. Instead the economy is listless, almost sedated.
If market participants seem on edge it's only because everything they once believed to be true is either being shown to be utterly false or the delay between cause and effect is so long that the theory is pointless.

 in Yahoo Finance :

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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