Peter Schiff, president of Euro Pacific Capital, appears on Countdown to the Closing Bell May 8, 2009.
The collapse has barely begun. We just started out. The events that that are going to set the collapse in motion have occurred.
It’s not really people rushing into stocks. I think they’re rushing out of cash.
We still have a pending commercial real estate collapse, a new collapse in residential real estate when ARM’s reset, and a credit card bubble coming down the pipe.
These stress tests are a joke. They were reverse engineered. There is no stress in these tests.
More news on the stress tests is coming out over the weekend, including reports that the Fed cut banks’ deficits after negotiations with the banks. One example of the ridiculousness of it all is that Citigroup’s original capital shortfall was reduced from $35 Billion to $5.5 billion because Citi convinced the Fed’s that they have future capital boosting impacts that will give them more available cash.
Â The stress tests did not put any real stress on the banks, and we will exceed the worst-case scenrios in unemployment and GDP growth by the end of this year. In the worst case scenario, the FED estimates the banks will need an additional $600 Billion to recapitalize.
What happens if the economy turns out to be in worse shape than the worst-case scenario?
Watch Peter Schiff on Countdown to the Closing Bell May 8, 2009
Mac Slavo Views:
Read by 49 people Date: May 10th, 2009 Website:www.SHTFplan.com
Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.