peter schiff burns the fuck out of congress in testimony

[saveliberty]

The Austrian school is the school of all the great economists including hazlitt, hayek, and mises.

the austrian school has been discredited because they don't believe in scientific method and are into magical thinking...

like most randians.

there is nothing "great" about the people you mentioned.

No they base their thought on individual behavior which can change, therefore extracting mathematically meaningful models does not work. It is more based in viewing what confidence individuals have in a product or the economy in general and how that will influence their buying. No magic to it, unless you consider Psychology magic.

 

[truthsaga]

Austrians focus outward only thinking about others, the Sith focus inward only thinking about themselves, that is where they get their power.

 

[eflatminor]

the austrian school has been discredited because they don't believe in scientific method and are into magical thinking...

Wrong. They don't believe that they, nor anyone, know what is best for other people.

 

[Jackson]

Excellent piece!

 

[Raoul_Duke]

schiff hyperinflation 2009 - Google Search

 

[Truthmatters]

Schiff has a pretty poor record

 

[eflatminor]

Schiff has a pretty poor record

And the Keynesian central planners? Let's check in on their "progress":

U.S. National Debt Clock : Real Time

Hey, look at that, you guys set a new record. $131,493 owed per taxpayer. Well done on your "record"

 

[flacaltenn]

Don't fall for partisians trying to discredit successful business people and economists by virtue of their beliefs in traditional academics. To them -- the "Austrian" school is just synonomous with Capitalism and that is a bad thing. Wouldn't waste my time explaining economic freedom to them because they don't believe in it. Nor do they believe in any number of other things like individual responsibility and soveignty or reward for taking risks.

Why bother?? TM is just parroting crap she saw on Dem Underground anyway...

 

[JWBooth]

Schiff has a pretty poor record

As usual, you are wrong again.

 

[blu]

Schiff has a pretty poor record

except he called the 2008 collapse, with almost precision accuracy, 4 years before it happened

 

[Raoul_Duke]

Here is Schiff in 2002: Schiff predicts Nasdaq 500 and Dow 4000


Now, had you listened to Peter in 2002, 2003, 2004, 2005, 2006 or even 3/4 of 2007, you lost your shirt. Had you placed bets based on Schiff's market calls, you lost everything you wagered.

The S&P (.INX) went from 1054 in May of 2002 (the date of the interview) to 1561 in Oct. 2007, a 48% gain and the Dow (.DJI) rose 40%.

Banking stocks, the primary victim of the housing bust, went up (JP Morgan (JPM) 36%, Bank of America (BAC) 41%, Wells Fargo (WFC) 39% , Wachovia (WB) 31% and American Express (AXP) 51%) during that time frame (dividends excluded which would dramatically add to results).

Bottom line? Had you listened to Mr. Schiff at anytime before Oct. 2007, you lost...big. To those who did, there is little consolation in the praise being heaped on him today.

Milton Freidman said, "markets can stay dislocated longer than you can stay solvent." For those who bet with Schiff between 2002-2007, they know the statement well.

Why is it a big deal? After all, Berkshire's (BRK.A) Warren Buffett claims he cannot time the market and often watches share prices decline in investments (like recent investments in Goldman Sachs (GS) and GE) before a rebound. How is this any different?

For one, Warren's loss is limited to his investment. He buys 1 share of stock "a" at $25. $25 is the most he can lose.

Now, if we listen to Peter and "short" stock "a" at 25, our loss has no limit. If it goes to $100, we lose $75. In shorting, we are only limited in our upside. If "a" goes to zero, "Schiffers" profit $25.

Buffett's strategy is an investing one and Schiff's is a trading and timing one.

Buffett followers can hold their shares, collect their dividend and wait for the rebound. Schiff followers collect no dividend and watched for over 5 years as their bet went wrong. How many stuck around? How many shorted into every market drop or "presumed" top over 5 years, only repeatedly losing money as the market kept rising and Schiff kept pounding his message home?

Schiff should not be getting the praise he is getting today for being "so right" after saying the same thing and being "so wrong" for the previous 5 years.

Being Wrong for Five Years Makes Peter Schiff Right Now? - Seeking Alpha

 

[Ame®icano]

 

[Raoul_Duke]

However much Asians trumpet the value of parsimony, their governments have been as bold as any in opening the fiscal sluices. One reason is the bitter memory of the 1997 Asian financial crisis when the International Monetary Fund imposed fiscal austerity on several Asian countries. Those measures are now almost universally seen as a blunder that unnecessarily exacerbated economic misery.

Asian governments have taken the lesson to heart. According to Fitch Ratings, fiscal stimulus packages as a percentage of gross domestic product amounted to 6.9 per cent for Vietnam, 7.7 per cent for Thailand, 8 per cent for Singapore, 13.5 per cent for China, and a whopping 14.6 per cent for Japan. Taiwan, with a relatively modest stimulus of 3.8 per cent, gave $100 spending vouchers to each of its 23m inhabitants, including convicts. The Singaporean government subsidised businesses that retained staff. In China, the mother of all stimulus packages funnelled $585bn of spending into the economy, and even more through directing state-controlled banks to increase credit.

[...]


Unlike in the west, there is little debate in Asia about how well the stimulus worked. It has been spectacular. Asian output is well above pre-crisis levels. HSBC is predicting growth for Asia ex-Japan of 8.6 per cent this year. Rather than contemplating more stimulus, authorities are trying to cool things down. Banks have been raising interest rates for months. China and others have introduced measures to take the heat out of the housing market. Fears about unemployment have given way to concerns about labour shortages and spiralling wage demands. Thus the question in most of Asia is not whether to remove stimulus, but how fast. Asia is in orthodox territory, balancing well-trodden trade-offs between growth and inflation.


FT.com / Columnists / David Pilling - Asia

 

[AmericanFirst]

The Austrian school can not point to a time in human history where their ideas have worked as advertised.

Neither can obamaturd.

 

[AmericanFirst]

The Austrian school is the school of all the great economists including hazlitt, hayek, and mises.

the austrian school has been discredited because they don't believe in scientific method and are into magical thinking...

like most randians.

there is nothing "great" about the people you mentioned.

You and truthdon'tmatter are sisters aren't you? Neither of you know the truth.

 

[AmericanFirst]

Schiff has a pretty poor record

So does obamaturd!

 

[Mr Liberty]

Schiff has a pretty poor record

So do you. so what?