Tuesday, September 30, 2008

Socialist “Bailout” Could Spark Collapse

Came across an accurate assessment here, concerning the bailout scheme.

A few highlights of the article-

While many of the talking heads and pundits on TV have been providing calming words of reassurance about proposed federal intervention in the financial system, analyst Peter Schiff of Euro Pacific Capital has been accurately warning for years about a financial meltdown and says that the worst, if Congress eventually passes the “bailout” bill, is yet to come.

Asked for comment on current media coverage of the financial meltdown, he told Accuracy in Media, “Absent when they have me on, it’s pretty bad.”

Many commentators, Schiff said, are telling people that if the bailout doesn’t go forward, there will be an economic crisis. However, “if we do it, there will be a bigger crisis,” he predicts.


Schiff had shocking advice for ordinary Americans.

“The first thing you do if you have a mortgage is you stop making the payments,” he said. “That’s the number one thing for people who have mortgages based on this plan. And use that money to buy gold or stock up on food. You’re going to need it. Meanwhile, no one is going to kick you out of your house. You’re going to be able to live in your house for probably a year or two before the government calls you up to give you a lower mortgage because nobody is going to foreclose on you right now. Why would you foreclose? You sell the loan to the government. This plan is a huge moral hazard and it’s going to lead to a surge in mortgage delinquencies.”


Schiff, who labels the proposed government takeover of the financial sector as socialism and refers to the Federal Reserve Board chairman as “Comrade Bernanke,” told AIM, “The government doesn’t have the authority to do any of this stuff. This whole bailout bill is illegal. They don’t have the authority to buy up mortgages. Nothing in the Constitution says they can do this.”

“Who needs Bolsheviks when you have the Fed?” he has written.

The author of “Crash Proof: How to Profit from the Coming Economic Collapse,” Schiff said that “The government doesn’t solve problems. It makes them bigger. So if we’re broke, which is the reality―that’s why these mortgages are not worth much because Americans can’t afford to pay the money back that they borrowed―the bottom line is we’ve borrowed and spent ourselves into bankruptcy following the government’s advice. They’re the ones that encouraged all this reckless borrowing and spending.”


Fast track to fascism?

2 comments:

Insolublog said...

Schiff said, are telling people that if the bailout doesn’t go forward, there will be an economic crisis. However, “if we do it, there will be a bigger crisis,”

This is a view I largely share. So do many economists and people who understand what happens when government inserts itself into the natural corrective signals in our economic circuit, meddling with the knobs and trying to force a result. The circuit more often than not, blows up.

Wyatt Earp said...

I just love how Barney Frank wants to let the families who defaulted on their homes keep them anyway. Oh sure, free homes to the first 4 billion Americans!

Dolt.