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Business/Finance See other Business/Finance Articles Title: Peter Schiff: ARMAGEDDON IS INEVITABLE Robert Williams: Hi there. I’m Robert Williams, the Founder and Publisher of Wall Street Daily. I’d like to thank you for joining me for this exclusive event with bestselling author, global asset manager, and world renowned financial expert Peter Schiff. Robert Williams Even if you think you don’t know Peter’s work, odds are that you do. Peter’s brilliantly timed 2006 trade against the housing market inspired the book – and the academy award-nominated movie – The Big Short. But now, a decade after Peter first predicted the Subprime Mortgage Meltdown, he’s issuing an even more serious warning. The warning concerns a Category-5 hurricane ready to make landfall. As you’re about to discover, the United States federal government will soon be forced into default. In fact, Peter says in his latest best seller, The Real Crash, that Armageddon is inevitable. So he and I have joined forces to deliver an important warning to Americans for 2016. Much of today’s content has never been released to the American public before now, including financial proof that the federal government is already completely insolvent. Last resort manipulations by the Federal Reserve, actions just taken, have now moved the day of reckoning even closer. The likelihood of a system-wide failure over the next 12 months is very real. Now, I want to be absolutely clear on something right from the top. Nothing can prevent the crisis at hand from occurring. Every emergency fiscal measure has already been exhausted, and policymakers at the highest levels of government have begun preparing themselves – and their families – for financial Armageddon. Many of them, in fact, are following the strategies Peter outlines in his book, The Real Crash. There’s still time for Americans to prepare, too, which is why I’m calling on the one man who accurately forecasted the 2008 financial crisis, Peter Schiff, to throw Main Street America a lifeline yet again. Peter’s now-famous first book, Crash Proof, included very specific strategies that any ordinary taxpaying American could have used to make millions during 2008’s chaos. But the stakes are even higher in his latest book, The Real Crash. Now, a word of caution before Peter and I peel back the layers of the coming crisis. “Be ready to feel outraged, troubled, and – frankly – scared.” Imagine a world where the banks have frozen your assets, and the government can’t provide basic services, like police and fire rescue. Well, you can still avoid becoming collateral damage. I printed a limited number of copies of Peter Schiff’s latest bestselling book, The Real Crash, fully updated for 2016. And I’m giving away every single copy – for free – until my supply runs out. In a few minutes I'll show you how to secure your free copy while there’s still a few left. But first, Peter’s urgent warning to Americans. Peter, you sent a letter to investors dated August 22, 2006. In it, you describe in detail the housing bubble on the verge of bursting. You even gave investors a blueprint for profiting from such a crisis. Now, it wasn’t to short the homebuilders. You said the greatest opportunities would lie in the downward spiral of the financial sector. Needless to say, you were eerily prophetic. But did you understand just how right you’d be? Peter Schiff: Not only did I understand how right I was going to be, but I actually expected something much worse to happen as a consequence. Peter Shciff And I still expect that, because what happened in 2008 wasn’t the end of the crisis. It was just the beginning. But in looking back at the prior bubble in the stock market… At the time, I recognized the difference between the stock market bubble and the real estate bubble. In the stock market bubble, people were speculating with their own money. In the real estate bubble, they were speculating with somebody else’s money. It was the bank’s. It was the lender’s. So my blueprint for profit was to short the mortgages themselves. Wall Street had created these packaged products of mortgages – particularly the subprime mortgages – which were bundled in a way to create the illusion that these mortgages were ultimately high credit quality. In fact, many of these subprime mortgages were rated AAA. But of course, some of them were rated much lower than that. It was the lower tranches that we were recommending shorting. And that was the first letter in a series of three that I sent out trying to get people interested in the hedge fund that we were establishing – specifically to short subprime mortgages. Schiff Warning Now, trying to find investors for my hedge fund, I accepted an invitation from the Western Regional Mortgage Bankers Association, which was a group of 3,000 mortgage bankers. I went there in later 2006 to talk about the coming collapse in the mortgage market and the housing bubble – and to try to find investors for my hedge fund. You can see the entire one-hour presentation on YouTube. But what you can't see on YouTube is the workshop that I gave subsequent to that speech, which was specifically on the hedge fund that we’d created to short subprime mortgages. And of the people who attended my workshop – maybe there were 50 to 60 of the 3,000 people that came – only one investor invested in that hedge fund. “They wrote a book about that trade. And, in fact, more recently it turned into a movie, The Big Short.” But imagine 3,000 people having the opportunity in the mortgage industry to short subprime mortgages – a year before they collapsed. And only one individual with the foresight to take advantage of it. My warnings were specific. I didn’t just say, “Oh, we’re going to have a crisis.” I went into every specific detail of what the problem was and what was going to happen. I have yet to see anybody write an explanation of the 2008 financial crisis – in hindsight – that is better and more accurate than what I wrote before it happened. Robert Williams: Peter, how did you see this crisis coming a full year, perhaps a little bit more than that, before the President, Wall Street, Congress? How did you see that crisis coming when no one else could see it? Peter Schiff: Well, I saw it a lot earlier than 2006. You can go back to the internet and look at the extensive writings from 2004 and 2005 in which I described – in every detail – the housing bubble. How it was being inflated and what the source of the problem was. I blamed mainly the Federal Reserve. I blamed Alan Greenspan and their low interest rates. But I went into all the problems in the appraisal industry, in the securitization industry. I went into the problems with Fannie Mae and Freddie Mac. In fact, one of the predictions I made back then – and I repeated that in my original book, Crash Proof – was that both Fannie and Freddie would, in fact, go bankrupt. That’s exactly what happened. What I wrote about was that after the housing bubble burst, and we have this financial crisis, instead of learning from its mistakes and recognizing its role in creating the crisis, the government would double down on those mistakes. That we would have the easiest monetary policy ever. That the government would try to reflate the housing market and the stock market, which I also wrote would go down with the housing market. I didn’t know what they were going to call it. They ended up calling it “quantitative easing.” I just knew that they were going to do it, and I knew that the result of that would be dramatic. That the crash I was writing about in that book was not the 2008 crash. That was the precursor to the crash. “The real crash is the one that’s still coming.” It’s the one that is the consequence of all of the policies that the government has pursued ever since the 2008 Financial Crisis. Poster Comment: Our spendthrift Congress has put us in this position with the tacit approval of the POTUS. Make sure you have positioned yourself properly to make it thru the hard times ahead. Post Comment Private Reply Ignore Thread
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