Economist Peter Schiff blasted the media aversion to acknowledging that the ongoing banking turmoil is in fact a “financial crisis” that could be worse than 2008.
Schiff highlighted America’s record high credit card debt and the failing banks and noted that it wasn’t a coincidence that “both the borrowers and the lenders are broke.” The “reason for that,” said Schiff on the March 21 edition of One America News’ Real America with Dan Ball, “is the Fed. The Fed kept interest rates artificially low for more than a decade, encouraging people to go deeper and deeper into debt and banks to extend” credit to them. Now, Schiff said the Fed’s incessant number of missteps corralled it into a position where it is being “forced” to “raise interest rates, something that was always going to happen.” In turn, the Fed effectively “created another financial crisis,” Schiff analyzed.
Schiff then turned his sights onto the liberal media trying to gaslight people on the real severity of America’s financial situation and deflect away from the horrid memories of 2008. “The media is reluctant to call this a financial crisis. They keep saying it’s a banking crisis. The financial crisis of 2008 was a banking crisis!” According to Schiff, “nobody wants to say what it is because they don’t want to evoke memories and comparisons to 2008.” However, Schiff warned, the collapse of a number of financial institutions like Silicon Valley Bank, Signature Bank and First Republic Bank were a “sequel to 2008. And like all sequels, this one’s going to be worse.”
OAN host Dan Ball had only one response to Schiff’s assessment: “Umm, yikes.”
Apparently, the banks aren’t learning their lesson and are reportedly doubling down on the expectation that the government will once again open the spigots of low-interest rate borrowing.
Fox Business senior correspondent Charles Gasparino reported for the New York Post that stocks didn’t climb between March 23 and March 24 “because corporate earnings are killing it, inflation has been put to rest, or the economic forecast is so bright.” Rather, reported Gasparino, “stocks rebounded because we have a banking crisis and the possibility of lower interest rates sometime soon.” This in turn means that traders, “like drug-addled junkies,” are betting that “the Fed could resume giving them their fix — pumping ‘heroin’ in the form of low interest rates into the drug addict that is the US stock market.”
Gasparino doubled down on his drug addiction analogy to emphasize the current condition of the stock market:
That’s right. The modern-day stock market is an addict — and like an addict, it can’t be trusted. It will lead you astray with false promises. Steal from you to feed its habit, feign health and strength when it has neither. More than anything else, it needs help — a treatment center, if you will, that removes its addiction to free money and allows prices to reflect the real condition of the US economy and forecasted corporate profits.
Conservatives are under attack. Contact ABC News (818) 460-7477, CBS News (212) 975-3247 and NBC News (212) 664-6192 and demand that they tell the truth about America’s “financial crisis.”