Monday, April 6, 2009

The Debts of the Spenders: Peter Schiff on M2M Changes

Peter Schiff is a notorious goldbug, that particular breed of perma-bear that believes gold is the answer to everything. While I don't normally take goldbugs that seriously b/c of their more outlandish conspiracy theories, they serve useful functions as heralds of approaching storms.

And there are many storms brewing in 2009.

Mr. Schiff is on point here w/his criticism of FASB's changes. He also could not resist a parting shot at Obama (Schiff was the economic adviser for Ron Paul):

Despite the pleas from bankers and politicians, mortgages are not plagued by a lack of liquidity but a lack of value. If sellers would be more negotiable, there would be plenty of liquidity. Who knows, at the right price I might even buy a few. The problem is that putting a market price on these assets would render most financial institutions insolvent, which is precisely why they do not want to let that happen.

Going from the sublime to the completely ridiculous, in a speech at the just-concluded G20 summit in London, President Obama urged Americans not to let their fears crimp their spending. It would be unwise, he argued, for Americans to let the fear of job loss, lack of savings, unpaid bills, credit card debt or student loans deter them from making major purchases. According to the president, "we must spend now as an investment for the future." So in this land of imagination (where subprime mortgages are valued at par), instead of saving for the future, we must spend for the future.



OSR said...

Schiff is a great smoke detector, but not such a hot fire extinguisher.

In Debt We Trust said...

Schiff and the other goldbugs have a great excuse for every time gold goes down - it's the COMEX gold shorting conspiracy theory!

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