[转贴] The crash will be worse than what we saw in 2008

not4weak

to what ell, i'm not saying it's going to create another housing bubble, it's facilitating the big bubble in government spending. the federal reserve printing all this money that's enabling the government to finance these huge deficits and it's preventing the economy from restructuring. you know, in his speech this morning, ben bernanke talked about structural unemployment. well, the structural unemployment is the result of interest rates being too low. and the fact that rates are too low, we're not saving enough, we're not investing enough, we're consuming too much. government is spending too much. all of this has the economy out of balance. we're not going to create lasting productive jobs. hey, peter, it's brian kelly. what i'm curious about, we get hold just a ton of treasuries at this point. almost a bubble in that. so if rates go higher, they lose money on that treasury portfolio and they don't want to lend anymore. so wouldn't we want to keep rates even? well, yeah, that's why the fed didn't ask the banks to stress test a big drop in the bond market because that's what's coming, and the banks would feel that. but you know, you've got ben bernanke. look at what he said last week on thursday. he gave a lecture to students at george washington university and he basically absolved the federal reserve of any responsibility for the housing bubble. hadhe basically said that interest rates have nothing to do with the housing problem. right now the fed is keeping interest rates artificially low because bernanke is trying to prop up the housing market. he's trying to preventing prices from falling. so how is it that interest rates affect home prices now? about the equities market, bernanke, interest rates, and basically they said to me, well, you've got around equities market that continues to rise on nothing more than election year shenanigans. do you agree with that? or do you believe there's concrete and substance behind what we're seeing in some of these equity appreciation? well, the substance is inflation. i don't think that the equity market is getting more valuable. it's that the dollars that we use to buy equities are losing value. i mean, look at gold prices were up big today, you know, this is not about the stock market going up. it isn't going up. that's the illusion created by the fed. our money is losing value, that's why oil prices are rising, and the fact is, our money is going to lose a lot more value because the federal reserve refuses to allow the economy to restructure and it refuses to acknowledge its culpability. and now inflating a bigger bubble in the bond market and government spending, the fed is the biggest enemy of this econom ben bernanke as far as i'm concerned, he's public enemy number one. he is helping to destroy this country, the sooner we can remove him from office, the better, we're never going to have a recovery while this guy's in charge. but pete, i happen to agree with what you're saying, public enemy number one notwithstanding. what will be the unintended consequences a year or 18 months, two years from now. what you're saying, this could be worse than '08/'09. oh, it is going to be, absolutely going to be. because the fed is creating more damage now than it did -- when it blew up the housing bubble. the problem is going to be eventually the world is going to is lying about inflation, inflation is a much bigger problem than the cpi numbers show. look at general mills last week, showing that their input costs are up 10%, 11% a year. that's a more accurate reflection. once the world realizes that inflation is running out of and the fed will do nothing about it because if the minute the fed takes this punch bowl away, the minute it raised interest rates sufficiently to cut off the inflation, the banks are going to fail, the federal government's going to have to declare bankruptcy, it's not going to be able to pay the interest on the national debt. the whole phony economy that the fed has constructed with cheap money is going to come toppling down. but the reality is, we have to kill this phony economy because it's unsustainable. we need to replace it with a viable one. but unfortunately, to do that, there's a lot of short-term pain because we've got to unwind this bubble. and the fed doesn't want that to happen. right. the fed is letting our politicians off the hook, trying to postpone the day of reckoning until after the next election. but there's always another election coming. we've got to deal with these problems. we can't keep making them worse. thatst what we did when the stock market bubble burst and we created the real estate bubble. point taken, peter. all we do is repeat our mistakes on a grander scale. sounds like pete is running for office again. peter, it is always great to get your point of view on the we appreciate your time. peter schiff or euro pacific capital. so peter's views are probably the more extreme end of the typical views we have -- but the points are here that -- well taken and he's 100%. his points are spot on. pete would admit he's a polarizing figure, which is one of the reasons people don't want to listen because a lot of things he says frankly you don't want to hear. right. the reality is, and pete would probably admit this, as well, the stock market can continue to go up in the face of that, but when it ends and i think pete would agree it's going to end poorly. so what we try to do every night is point out things that are interesting on a day-to-day basis. pete talking about things structurally that have come to fruition at some point. i don't know when that is. in terms of his prediction of a crash that will be worse than what we saw in 2008. i would think that many people here would totally disagree with that. that is not anywhere -- i would not totally disagree with it. but it is true by inflating these bonds as much as they have, the people that are the last ones stuck when the music stops that, i will hurt a lot. will the big winners in the first quarter be the big losers of the second? 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