Saturday, November 22, 2008

Schiff: Bailouts Won't Work

Peter Schiff, once again, is the voice of sobriety. Here's why he thinks the bailouts won't work.

This paragraph cuts like a straight razor:

Similarly any money that the world lends to America to finance more consumption will never be repaid. We will simply blow through it, and be back, hat in hand, begging for more. As we painfully learned in the housing bust, lending people money that they cannot pay back makes no sense. This applies equally to foreign central banks lending to America as it does to commercial banks lending to homeowners.

Schiff was a modern Cassandra figure leading up to this crisis. He forecasted the financial collapse and nobody believed him. See my earlier link:

Peter Schiff Was Right: Incredible Youtube Compilation

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