Analysts and media attributed huge sell-offs to anxiety and panic, but Peter Schiff, president and chief global strategist for Euro Pacific Capital, said the real problem isn’t that people lack confidence. They lack money, he said.
“The stock market is reflecting the problems in our economy,” Schiff said during an interview Friday. “You hear the president talk and say they want to keep Wall Street’s problems on Wall Street, but the real problem is on Main Street. Wall Street is in trouble because they engineered trillions of dollars in loans to Main Street, and Main Street is too broke to pay them back.”
He said that the only way to deal with the situation is to tell Americans: “The borrowing is over. The consuming is over, and the whole phony economy is gone.”
“We’re not out of the woods yet,” he said. “There’s really no reason for people to own U.S. stocks now. We’re going to be in the worst recession of our lifetime.”
Michael Porfirio Mason
AKA The Peoples Champ
AKA Your favorite International Playboy on the Rise’s favorite International Playboy on the Rise
The Guide to Getting More out of Life
http://www.thegmanifesto.com
More than just a mere liquidity or credit crisis, the current financial storm represents the death throes of the old global economic order, and perhaps the birth pains of a new one. The sun is setting on the borrow and spend culture that has all but defined us for a generation. Our long ride on the global gravy train is finally coming to an end, and once it does nothing will be the same. The sooner we come to grips with this the better.
Despite the myriad of proposals that are coming from Washington and other world capitals, we must understand that this crisis cannot be cured by governments. In the United States, credit is gone because savings are gone. Our shallow pool of savings has been depleted through bad loans, and we can no longer entice foreigners into lending us their available savings. Given that we are already too loaded up on existing debt that we cannot realistically repay, who can blame them for not wanting to lend us more?
As a result, the free market is trying to put an end to our spending spree. Without savings or home equity to fall back on, Americans struggling with rising prices are finally being forced to curtail their spending. This has terrified our leaders and is causing them to dismantle the remaining structure of our free enterprise-based economic system.
Were the government to allow market forces to work, Americans would now have to pay cash for their consumption. That would mean no instant credit for new cars, plasma TVs, appliances, consumer electronics, clothing, furniture, etc. Unless buyers actually had the cash in their checking accounts these purchases would have to be deferred. From an economic perspective this is precisely what the doctor ordered. But for an economy based 72 percent on consumer spending, the medicine will go down hard.
Peter Schiff Versus Stephen Leeb – Party’s Over – America
Peter Schiff Says America On Brink of Economic Collapse (from back in April ’08)
The Rest is Up to You…
Michael Porfirio Mason
AKA The Peoples Champ
AKA Your favorite International Playboy on the Rise’s favorite International Playboy on the Rise
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Just when you think Barack Obama will win easy, its people like this that make you think it will be a close race (and she is from a “Blue State”):
McCain Volunteer thinks “Obama is an Arab”
McCain Supporter: “Obama is an Arab”
Someone needs to put Grandma to bed.
Where are this ladies kids to tell her whats up?
Oh yeah, probably cooking up crystal meth, shopping at Walmart and eating fast food.
McCain deserves some props for setting the record straight.
But one question, aren’t some Arabs, Americans too?
Also, does anyone also notice that all the Red States are a dump?
And that the only decent places in the Red States (Miami Beach, New Orleans, Las Vegas, etc) are Blue?
The Rest is Up to You…
Michael Porfirio Mason
AKA The Peoples Champ
AKA Your favorite International Playboy on the Rise’s favorite International Playboy on the Rise
The Guide to Getting More out of Life
http://www.thegmanifesto.com
The move is, stack chips in the Down Economy, make heists, accumulate wealth, and then move to somewhere dope.
The Rest is Up to You…
Michael Porfirio Mason
AKA The Peoples Champ
AKA Your favorite International Playboy on the Rise’s favorite International Playboy on the Rise
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Kentucky Derby and Preakness winner Big Brown’s racing career is over after injuring his right front foot during a workout at Aqueduct on Monday.
Trainer Rick Dutrow said the 3-year-old colt, who was preparing for the Breeders’ Cup Classic on Oct. 25, appeared to kick himself while working on the turf course at Aqueduct with stablemate Kip Deville. Big Brown was able to complete the six-furlong work when Dutrow noticed blood coming out of the foot.
Though the extent of the injury is unknown, Michael Iavarone of IEAH Stables, co-owners of Big Brown, said the horse who captivated the racing world during his Triple Crown bid will not race again.
“It’s in the best interest of the horse to let him recover and move on to his breeding career,” Iavarone said.
Michael Porfirio Mason
AKA The Peoples Champ
AKA Your favorite International Playboy on the Rise’s favorite International Playboy on the Rise
The Guide to Getting More out of Life
http://www.thegmanifesto.com
