This Crisis Is Economic, Not Merely Financial

Peter Schiff explains that this crisis is not "merely" a financial crisis like in 2008 but an economic crisis with much bigger repercussions:

The financial crisis of 2008 was a cake walk compared to this. All that happened in 2008 was real estate prices fell, borrowers defaulted, and lenders lost money. Today global commerce is grading to a halt. Production is shutting down. This crisis is economic, not merely financial.

Everyone Will Have To Be Bailed Out

Peter Schiff says it's game over as this time around everyone will have to be bailed out:

"In 2008 we bailed out the banks and GSE's, as they owned the mortgages. Today it's not just mortgage debtors who can't pay, it's all debtors. It's not just banks that need to be bailed out, but every leveraged business in every industry. Who is left to do the bailing? Game over!"

Corona Virus: China Has Done a Great Job!

China has done a job. They were caught off guard, they were the first to face it, they were surprised. The disappointing thing to me is that the West is not ready either. We had a 3 month notice in America and yet nobody is prepared. We don’t even have testing kits for more than a million people in a country of 325 million people. China, once they got it together, they took very draconian, swift measures and seem to have it under control. I wish I could say that for Italy.

Stock Market: Panic Is Misplaced

The stock market panic is misplaced. Markets will be OK for a while because central bankers will lower interest rates and governments will keep spending widely.

The U.S. Stock Market Will Rally Back To New Highs

If you ask me today, I would say we would make new highs in the US stock market. Now I use that since it is the largest and most important stock market. I would suspect we would see new highs. We may even have a blow-off bubble. It has been a while since we have had a blow-off bubble in any stock market in the world. So it may turn into a bubble. I do expect at least new highs before the whole thing collapses. 

- in Economic Times (March 4, 2020)

Related trading instruments: SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Futures

Interest Rates Will Go Even Lower

I expect things to be OK for a while in nearly all markets, including bond markets. These guys are going to drive interest rates to unbelievably low levels. This is not good. I want to tell you again, this is not good for the world. But it is good for the markets for a while. 

- in Economic Times (March 4, 2020)

Markets Are Going To Be OK For a While

So now the markets are going to be okay for a while. We may even turn into a huge bubble, because they are going to print a lot more and they are going to spend a lot. It means, in the end, things will be worse, but in the meantime happy days are here. 

- in Economic Times (March 4, 2020)