Economic guru Peter Schiff is sounding more economic alarms. This time, without mincing words, he says that the Federal Reserve’s raising of the interest rates will cause a stock market collapse.

Euro Pacific Capital CEO Peter Schiff and Steven Quirk, the executive vice president of TD Ameritrade’s trader group discussed the Federal Reserve’s impact on the stock market and whether corporate earnings can help the market make a comeback. According to Fox News, Schiff’s assessment was none too calming. “[The Federal Reserve] should raise rates, but the market is going to collapse as a result,” he told FOX Business’ Liz Claman on Monday.

Schiff also said that investors should expect a long drawn-out bear market with the cost of living rising to dramatic levels. “This bear market is not going to end quickly,” he said.

The latest China-U.S. tariff threats have spooked the markets, driving the Dow Jones Industrial Average to a more than 900-point swing from session highs to lows today. The index clawed back some of its loses in the final hour of trading, closing 245 points lower, or nearly 1 percent, at 24,443. The S&P 500 fell to 2,641, about 0.65 percent, and the Nasdaq Composite was down 1.6 percent at 7,050.29.

The CBOE Volatility Index, Wall Street’s “fear gauge,” has jumped an estimated 87 percent since the close of the market on Sept. 28, 2018. –Fox News

Quirk says that there’s no end to October’s fear in sight, but they aren’t signaling armageddon either. “[Investors] are not optimistically saying this is going to bounce right back, but they are also not saying this is the end of the world,” he said on Countdown to the Closing Bell. 

Schiff is taking on a less optimistic view, however. He said that the debt racked up by companies during the stock market boom and a hike in interest rates will cause corporate earnings to potentially collapse at a rapid pace. “There is a lot of optimism about earnings and unfortunately that’s already priced into these stocks,” he said.