Tip:
Highlight text to annotate it
X
>> THOSE CUPS ARE SMALL.
STUART: NO, I DRINK SERIOUS
COFFEE, BREW IT MYSELF.
IT'S FREE.
AND EXACTLY WHERE ARE WE THIS
THURSDAY MORNING?
STOCKS AT RECORD HIGHS.
THE HOUSING MARKET IS COMING
BACK NICELY.
I'VE GOT MORE ON THOSE
FORECLOSURE DECLINES SHORTLY AND
THE ECONOMY, IT IS GROWING
SLOWLY.
SOME PEOPLE MIGHT SAY THAT
PRINTING MONEY, GOOD OLE BEN,
HAS BEEN GOOD FOR AMERICA.
PETER SCHIFF OF COURSE, WILL NOT
AGREE HE WITH THAT AND HERE HE
IS.
ALL RIGHT, PETER, BEFORE YOU
LAUNCH, HAVE YOU GOT NOTHING
GOOD TO SAY ABOUT WHAT BEN
BERNANKE IS DOING?
BECAUSE HE HAS GOT INTEREST
RATES DOWN.
HE HAS HELPED THE HOUSING
MARKET.
HE HAS HELPED PUSH PEOPLE INTO
STOCKS AND AWAY FROM BONDS.
COME ON, HE HAS.
>> OH, I MEAN, THIS IS -- THIS
IS MONETARY, WE JUST TALKED
ABOUT, MONETARY CAFFEINE.
THAT'S IT.
AND HE'S INJECTING IT INTO THE
ECONOMY AND IT'S NO GOOD.
THE MARKET IS RALLYING, BUT IT'S
RALLYING FOR THE WRONG REASONS.
STUART, IF YOUR CHILD BROUGHT
HOME A "A" ON THE EXAMPLE AND
YOU KNEW HE CHEATED ON THE TEST,
ARE YOU PROUD OF HIM.
STUART: HOLD ON, YOU CAN'T
DISMISS IT BECAUSE A LOT OF
PEOPLE ARE MAKING A LOT OF
MONEY.
THE AVERAGE WEALTH OF
AMERICANS--
>> STUART.
STUART: AS HOMES GO UP AND AS
HOUSING GOES UP AND AS STOCKS GO
UP, THEY FEEL MORE WEALTHY.
WHETHER IT'S BECAUSE OF BEN
PRINTING MONEY OR ANYTHING ELSE,
DOESN'T REALLY MATTER, DOES IT?
>> WELL, SURE, IT MATTERS AND
PEOPLE FELT GREAT AS THE HOUSING
BUBBLE WAS INFLATING IN 2003, 4,
5 AND 6.
WE'RE BLOWING MORE AIR INTO THE
SAME BUBBLE.
LOOK, IF WE HAD A MORE
FEDERAL
RESERVE THAT WASN'T MONETIZING
THE STEPS AND PRINTING MONEY AND
BUYING MORTGAGES, IF THEY LET
INTEREST RATES GO TO A FREE
MARKET PRICE, THE DOW JONES
INDUSTRIALS WILL BE THOUSANDS
LOWER RIGHT NOW AND EVENTUALLY,
BECAUSE THIS IS A PHONY GAME,
EITHER ALL THE GAINS ARE GOING
TO GO AWAY WHEN THE FED TAKES
AWAY THE PUNCH BOWL OR IF IT
NEVER TAKES AWAY THE PUNCH BOWL,
THE GAINS ARE MEANINGLESS
BECAUSE THEY'RE OBSCURED BY
MASSIVE INFLATION.
>> I TAKE YOUR POINT, I REALLY
TAKE YOUR POINT, BUT A LOT OF
VIEWERS ARE GOING TO SAY, THERE
GOES PETER SCHIFF ALL OVER
AGAIN, HE'S BOUND TO BE RIGHT IN
THE VERY LONG-TERM.
AND YOU ARE.
THERE WILL BE ANOTHER CRASH AND
A BUBBLE AT SOME POINT IN THE
FUTURE AND YOU WILL BE RIGHT.
MEANWHILE, YOU'VE MISSED OUT, OR
CERTAINLY A LOT OF OUR VIEWERS
MAY HAVE MISSED OUT ON THE
HOUSING RALLY AND THE STOCK
RALLY BECAUSE THEY'RE LISTENING
TO YOU.
>> NO, NO, I'M NOT TELLING
PEOPLE NOT TO BE IN THE MARKET,
QUITE THE OPPOSITE.
I'M TELLING PEOPLE THAT STOCKS
ARE GOING UP.
I'VE BEEN SAYING THAT FOR YEARS.
I PREFER FOREIGN STOCKS TO U.S.
STOCKS AND TELLING PEOPLE FOR
YEARS, IF THE CHOICE IS BETWEEN
PUTTING YOUR CASH UNDER YOUR
MATTRESS OR IN THE BANK, BUYING
BONDS OR BUYING U.S. STOCKS, BUY
U.S. STOCKS.
I'M JUST NOT GOING TO LIE TO
MYSELF ABOUT WHY THE MARKET IS
RALLYING AND NOT GOING TO
PRETEND IT MEANS THAT THE
ECONOMY IS GOOD OR THAT U.S.
CORPORATIONS ARE MORE
PROFITABLE.
IT'S NOT.
DELUSION BY THE FED AND IT'S
GOING TO END.
AND THIS IS A PROBLEM THAT'S
GOING TO COME BACK TO BITE US IN
TEN OR 20 YEARS.
THIS IS LOOMING ON THE HORIZON.
I DON'T KNOW THIS YEAR, NEXT
YEAR, THE YEAR AFTER, BUT IT'S
GOING TO BE A HORRIFIC CRISIS,
MUCH WORSE THAN WHAT WE HAD IN
2008.
>> ALL RIGHT.