The world should have paid heed then...Prediction of recession
Lot of us in this world are facing the brunt of recession in some way or the other.But little did we know that it was predicted by Peter Schiff, an American Economic Commentator way back in 2006.The more interesting fact is that the accuracy with which he predicted things.
The link to his prediction is this video:
http://www.youtube.com/watch?v=2I0QN-FYkpw
Few interesting things he mentioned in the video are:
2006 comment : The basic problem of the US Economy, is that we have too much consumption and borrowing, and not enough production and saving. We should not resist the recession, but embrace it, because the disease is all this debt finance consumption. The cure is, that we stop consuming, and start saving, and producing again, and that’s a recession. And sometimes, medicine tastes bad, but you have to swallow it!
2007 comment : The sub prime type crisis is going to unfold in other places such as bonds backed by auto loans, credit card debt, and that’s going to pull the rug out from under the consumer. Not only can he not borrow money to buy a house, he can’t borrow money to buy a car, he can’t use his credit card
Critics said during that time:
"The Central Banks have not yet fired their big guns, they will fire them when necessary, the worst is over."
Now the critic comments seems humorous..isn't it??
Source: Alumni,Praxis Business School
Date: 2nd Dec.,2009
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