Yesterday, Jake Tapper had Peter Schiff on his show, giving those who care to listen a needed corrective about the stock market euphoria in the wake of the Dow Jones historic high.
Should people be happy that the Dow Jones industrial average hit a historic high of 16,000?
“Not if you’re concerned about the economy,” said CEO of Euro Pacific Capital Peter Schiff, author of “The Real Crash – America’s Coming Bankruptcy.”
Schiff correctly predicted the housing market crash would overwhelm the financial system.
“The rise in the stock market, it’s not because of a good economy but because of bad monetary policy. What’s driving the rally is the (Federal Reserve) pouring all this cheap money into the market,” said Schiff.
“The Fed is enriching the few at the expense of the many,” said the investor.
“If they ever do the right thing and turn those spigots off, the market’s going to come crashing back down,” he said, adding if that happened, the Dow Jones would drop well below 13,000.
“What the Fed is doing to goose the stock market and the housing market is actually hurting the real economy. It’s preventing it from restructuring in a positive way that would produce genuine economic growth and prosperity that would be enjoyed by everyone,” said Schiff.
In a just world, the Federal Reserve would not exist… it is a largely foreign-owned power on U.S. soil, robbing us of our wealth every day.
As for the stock market, I will not be surprised to see a “mania” phase develop in the near future, followed by one of the biggest collapses in history. Please be careful about being sucked in to the euphoria—yes, people will very possibly make a lot of money in the next few months or year, but be nimble, because once the drop starts, it’ll be a waterfall.
When a fire breaks out, everyone heads for the exits at the same time, and many get trampled.