It is always fascinating to look back and to listen to those who were proven right. There is a wonderful YouTube video featuring past interviews where Peter Schiff was right. He predicted the collapse of the housing market, the decline in stocks and the coming credit crisis, including the dangers of American consumers having too much credit card debt.
In watching the video, I noted a few of Peter’s very poignant ideas. The first is that it is folly to continue borrowing to live beyond our means, both as individuals and as a country (this applies to the United States and other countries). He noted that a recession (which he also predicted as imminent) could be useful. He argued that the cure is to stop consuming and to rebuild and having consumers saving instead of spending. This will lead to some difficult times, but the end result will be a saner economy. The Penny Pincher concurs.