Economist Peter Schiff has actually warned that today banking crisis is the cusp of a much worse financial crisis. “It’s going to get much much worse if you are going to try to dismiss it,” he worried. Citing the Federal Reserve’s recession projection, he alerted: “Normally the Fed doesn’t forecast a recession. So if they can actually see this one coming, it likely means it will be massive.”
Peter Schiff on Banking Crisis, Financial Crisis, and Recession
Gold bug and financial expert Peter Schiff alerted in a current interview on Trader TELEVISION Live that the present banking crisis is not over and a much worse financial crisis will follow.
Schiff described that “Everybody has talked about a banking crisis” however “nobody wants to refer to it as a financial crisis.” He exclaimed: “No! This is a financial crisis. The 2008 financial crisis was also a banking crisis unless people forget it was the banks that were failing.” The financial expert worried:
This is the cusp of the crisis. It’s going to get much much worse if you are going to attempt to dismiss it.
He compared the present crisis to the subprime home loan crisis, keeping in mind that the Federal Reserve is stating: “It’s simply a couple of banks. It’s simply Silicon Valley Bank or Signature Bank or the other one that stopped working. That’s like when the subprime blowup initially took place, no one wished to confess that it was a home mortgage crisis. They simply stated: ‘Oh, it’s simply consisted of to these handful of subprime home mortgages. Don’t stress over it, absolutely nothing to see here, it’s no huge offer, it’ll simply blow right over … That’s precisely what they are stating now: ‘This is absolutely nothing, it’s no huge offer.’” However, Schiff argued:
It is a huge offer. It’s not absolutely nothing.
Regarding the possibility of huge banks stopping working, Schiff stated: “Those banks are insolvent too. It’s just that they’re too big to fail so we won’t let them but that just means we have to print a lot of money to prevent them from failing.” Nonetheless, he cautioned that the Federal government rescuing depositors of Silicon Valley Bank and Signature Bank but not smaller banks “is going to create a run on these small banks,” emphasizing: “That’s going to create a huge problem.”
Commenting on the Fed minutes that were launched on Wednesday, Schiff tweeted: “According to its recent minutes, the Fed no longer expects a soft landing, but a mild recession. What makes the Fed think the recession will be mild?” He continued:
Normally the Fed doesn’t anticipate a recession. So if they can in fact see this one coming, it likely indicates it will be huge.
Do you concur with Peter Schiff? Let us understand in the comments area below.
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