Peter Schiff has been predicting this economic crapshoot for quite some time now (he claims since 2004). Here is a collection of people laughing at him for his predictions (which turned out to be spot-on):
Here is Peter on NPR this past Friday discussing the current situation.
His basic argument is that our consumption (house improvements, TVs, cars) / service (retail) economy is/was not sustainable. At the peak, the American economy was nearly two-thirds consumption. Instead of investing in manufacturing (ie, products other countries would buy), we were investing in consumer goods with little real value (TVs, cars) or inflated value (houses). Thus, the American economy was accumulating debt lent to us via foreign nations (China!) to pay for things that our lenders (the Chinese) didn't want to buy. Now, the American citizen is left with no assets of value (or less than paid for) to pay back the money.
Given that he has been fairly accurate thus far, I'm genuinely afraid of things to come.
-Andrew
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About Us
Andrew Thornburg is pursuing a B.S. in Electrical Engineering at the University of Pittsburgh.
Andrew Noel is pursuing a B.A./M.A. in American Studies at the George Washington University.
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1 comments:
This is such a sweet video.
This shows the utter ridiculousness of the fact that we put stock in the opinions and predictions of people in an industry that is almost impossible to predict.
Also Ben Stein is an idiot - he makes a movie decrying evolution, and he says in that Merril Lynch is a well run company in this video.
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