{"id":51391,"date":"2020-02-25T19:30:31","date_gmt":"2020-02-26T00:30:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51391"},"modified":"2020-02-25T19:30:36","modified_gmt":"2020-02-26T00:30:36","slug":"schiff-us-is-in-a-gigantic-bubble-covid-19-is-going-to-be-the-pin","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51391","title":{"rendered":"Schiff: &#8220;US Is In A Gigantic Bubble&#8230; &#038; Covid-19 Is Going To Be The Pin&#8221;"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/schiff-us-gigantic-bubble-covid-19-going-be-pin\">Schiff: &#8220;US Is In A Gigantic Bubble&#8230; &amp; Covid-19 Is Going To Be The Pin&#8221;<\/a><\/h3>\n\n\n\n<p>While yesterday&#8217;s collapse in stocks has been broadly blamed on worsening Covid-19 headlines; Peter Schiff, the CEO and chief global strategist at Euro Pacific Capital, dug a little deeper into the real problems behind the market&#8217;s fragility&nbsp;<a href=\"https:\/\/www.rt.com\/business\/481640-us-fed-policy-coronavirus\/\"><em>on RT&#8217;s Boom Bust this week<\/em><\/a>.<\/p>\n\n\n\n<figure><iframe allowfullscreen=\"\" src=\"https:\/\/www.youtube.com\/embed\/aPf3opRdBXU\"><\/iframe><\/figure>\n\n\n\n<p>According to Schiff,&nbsp;<em>&#8220;the bond market is telegraphing right now that&nbsp;<strong>we are going to have several more rate cuts<\/strong>, I think between now and the end of the year.&#8221;<\/em><\/p>\n\n\n\n<p>In fact the market is pricing in almost 2.5 rate cuts by the end of 2020&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm774C_0.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfm774C_0.jpg?itok=rx28bXtR\"><\/a><\/p>\n\n\n\n<p>Peter noted that US stock markets were already vulnerable before the virus outbreak.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Remember,&nbsp;<strong>we\u2019re talking about the US stock market that\u2019s at bubble territory, nosebleed valuations, long in the tooth, the longest bull market in US history that has been fueled by the most monetary and reckless fiscal policy in US history<\/strong>. But this is a bubble in search of a pin. So, maybe the coronavirus is going to be the pin. But if we had a healthy market, if we had a healthy economy, it wouldn\u2019t matter about the coronavirus. It\u2019s because the economy is sick. That\u2019s the problem, not the people who are infected with this virus.\u201d<\/p><\/blockquote>\n\n\n\n<p>And what will The Fed do? What they always do! If all you have is a hammer, everything looks like a nail&#8230;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>&#8220;Whether they commit to moving to zero or not, that&#8217;s exactly what they are going to do,&#8221;<\/em>&nbsp;Schiff says.<\/p><p><strong><em>&#8220;The Fed should not be cutting interest rates but that&#8217;s what they are going to do because it&#8217;s the only thing they can do.&#8221;<\/em><\/strong><\/p><\/blockquote>\n\n\n\n<p>That is not going to cure coronavirus or the economy, it&#8217;s simply going to make US economy sicker, Schiff notes.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong><em>&#8220;The US economy is in gigantic bubble and maybe the coronavirus is going to be the pin.&#8221;<\/em><\/strong><\/p><\/blockquote>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Schiff: &#8220;US Is In A Gigantic Bubble&#8230; &amp; Covid-19 Is Going To Be The Pin&#8221; While yesterday&#8217;s collapse in stocks has been broadly blamed on worsening Covid-19 headlines; Peter Schiff, the CEO and chief global strategist at Euro Pacific Capital, dug a little deeper into the real problems behind the market&#8217;s fragility&nbsp;on RT&#8217;s Boom Bust [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[29011,303,1849,534,963,827],"class_list":["post-51391","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-covid-19","tag-fed","tag-financial-markets","tag-monetary-policy","tag-peter-schiff","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51391"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51391\/revisions"}],"predecessor-version":[{"id":51392,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51391\/revisions\/51392"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}