Preview: Peter Schiff Joins Benzinga To Discuss The Imminent U.S. Financial Crisis That's 'Much Worse' Than 2008
- Peter Schiff believes that the U.S. economy is on the verge of a recession that will be worse than the Financial Crisis of 2008.
- He feels that the U.S. economy is too weak to handle an interest rate hike.
- Schiff will be joining the Benzinga PreMarket Prep Show live on Friday, November 13 at 9:15 a.m. ET to discuss his alarming economic outlook.
Author and contrarian investor Peter Schiff was on CNBC last week explaining why he believes the U.S. economy will not have a happy holiday season this year. In fact, Schiff believes the writing is on the wall that the next U.S. recession is imminent and will be even worse than the Financial Crisis of 2008.
The U.S. employment numbers for the month of October were surprisingly strong, but Schiff believes that weakness in holiday sales will soon trigger a 180 degree turn in hiring. “I expect layoffs to start picking up by the end of the year,” Schiff said. “Retailers have overestimated the ability of their customers to buy their products.”
No Rate Hike
A vast majority of economists and market watchers believe that, if not in December, the Fed’s first rate hike will be coming sooner rather than later. However, Schiff argues that the U.S. economy is still too fragile to handle a rate hike, and Janet Yellen’s hands are tied indefinitely.
According to Schiff, all the Fed talk about raising rates has been done to convince the world that the U.S. recovery has been solid. However, in reality Yellen “can’t admit that she can’t raise [rates] because she’s admitting the whole recovery is a sham and that the policy was a failure.”
How Bad Will It Get?
The recession that Schiff foresees is not your run-of-the-mill recession. He believes that the recent run-up in the dollar is actually a massive Fed-driven bubble, that is ready to burst at any time.
“Eventually, the bottom is going to drop out of the dollar and we are going to have to deal with reality," Schiff told CNBC. “That reality is we are staring at a financial crisis much worse than the one we saw in 2008.”
Mr. Schiff will be joining the Benzinga PreMarket Morning Show live on Friday, November 13 at 9:15 a.m. ET to elaborate on his alarming prediction and discuss what traders should do to stay one step ahead of a market downturn.
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