Are people going to start listening to Peter Schiff?

Don't Blame Captialism

Will the Big Three Automakers Survive?

Peter Schiff, president of Euro-Pacific Capital, explained why he is opposed to U.S. aid to faltering automakers: “if the government props the company up with more bailouts, it will just extend the inefficiencies and let them keep building cars no one wants to buy, at highly overpriced labor.”

Home prices see another record plunge

"The goal of all these plans is to give consumers more money to spend. However, excess consumer spending is part of the problem, not part of the solution" he said. "After a decade-long spending orgy, market forces are finally trying to restrict consumer spending and dampen credit. But the stimulus looks to provide a new source of funds after savings, income, and credit have been exhausted. Our imbalanced economy is in desperate need of retrenchment, but stimulus plans will effectively hold the firemen at bay while throwing gasoline on the flames."

Schiff explained that the housing boom's exotic mortgages, which let people buy homes with zero money down, have vanished. Now people must save to afford a home. But easy credit means people will buy more consumer goods and save less to put towards housing. As a result, he expects home prices to fall a lot more.

"They'll surrender all the gains they made in the past 10 years," he said, "and be even lower than they were 10 years ago."