kewp, what amounts to $500 billion? The total of writedowns, or the potential amount of tsunami flood back? I’m not sure what you mean, or where you are getting that figure from.
Actually, it looks closer to 700 billion these days.
I don’t think Peter Schiff is totally wrong. He was obviously right about the housing bubble. But it looks like he put his clients money in the gold, oil and China bubble instead.
And just because he called the housing bubble (Stevie Wonder could have seen that coming); don’t think he got everything else spot on.
I keep hearing this talk of severe inflation, I just don’t see any evidence of it other than in hindsight (high housing prices). *Everything* is collapsing around the world. My ETF tracker doesn’t show a *single* long fund on the first page for the year. Every single one is short.
That is deflation personified.
And as long as the dollar stays strong and I keep my job, I’m fine with this.
Remember, my position is that the hyper-inflationary credit-bubble already happened. Its in the process of a deflationary collapse and will continue for years. All Bernanke can do is refill the banks coffers to replace bad loans. He can’t force the banks to lend and can’t make the consumers borrow.
He also can’t fix the credit score of all those FB’ers or wipe their bad debt and back taxes off the books.
The only way he could cause hyper-inflation would be if the Fed just started printing money and giving it out willy-nilly. I understand that may be the end-game for Helicopter Ben, but I remain skeptical.
