Euro Pacific Capital CEO Peter Schiff is sounding the alarm after this week’s market selloff, saying Wall Street and the U.S. economy are on the verge of a recession.
“This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business.
Schiff is predicting a recession, accompanied by rising consumer prices, that will be “far more painful” than the 2007-2009 Great Recession.
Schiff said it isn’t entirely the Fed’s fault, however, because they have been acting “irrationally” for a very long time while slowly adding nails to the economy’s coffin.
“What is crazy is for the Fed to believe that they can raise interest rates without pricking their own bubble,” he said.
“All bear markets start off as corrections. I think this one is probably a bear market. It’s long overdue,” Schiff said on FOX News Business.
Schiff said investors are on the edge of a precipice that foresees a bear market far worse than the stock market crash of 2008.
“This is a bigger bubble than the one that blew up in 2008, and the crisis that is going to ensue is going to be far larger,” he said.
Schiff, along with other market experts, has criticized the government as well, for their obvious role in all economic crises. He’s warned about rising interest rates, the disaster the trade war will have, and the skyrocketing global debt which will all compound into a massive financial problem that’s inevitable.
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