Economic guru Peter Schiff is saying that the next market crash will be “far more painful” than that of the Great Recession in 2008. With rising interest rates and tariffs spiking the cost of living, Americans will have some difficult financial times ahead.
“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said. “This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business. Schiff is predicting a recession, accompanied by rising consumer prices, that will be “far more painful” than the 2007-2009 Great Recession.
President Donald Trump blamed the recent stock market woes on the Federal Reserve and the rising of interest rates. Schiff said it isn’t entirely the Fed’s fault, however, because they have been acting “irrationally” for a very long time while slowly adding nails to the economy’s coffin. Trump said that the United States’ central bank is solely responsible for the worst stock market selloff since February, saying the Federal Reserve “has gone crazy.”
“I think the Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” Trump told reporters on his way to a rally in Pennsylvania on Wednesday. Schiff said the president is wrong about the Fed going “crazy” because the central bank has been acting irrationally for a long time. However, what Schiff did say, was that the Fed will pop their own bubble. “What is crazy is for the Fed to believe that they can raise interest rates without pricking their own bubble,” he said.
“All bear markets start off as corrections. I think this one is probably a bear market. It’s long overdue,” Schiff said on FOX News Business. Schiff said investors are on the edge of a precipice that foresees a bear market far worse than the stock market crash of 2008. “This is a bigger bubble than the one that blew up in 2008, and the crisis that is going to ensue is going to be far larger,” he said.
Schiff, along with other market experts, has criticized the government as well, for their obvious role in all economic crises. He’s warned about rising interest rates, the disaster the trade war will have, and the skyrocketing global debt which will all compound into a massive financial problem that’s inevitable.