Peter Schiff Says Banking Crisis Not Over, Much Worse Financial Crisis Incoming — Warns of ‘Massive’ Recession – Economics Bitcoin News

Economist Peter Schiff has warned that the current banking crisis is the cusp of a much worse financial crisis. “It will only get worse if you try to refuse him,” he stressed. Citing the Fed’s recession forecasts, he warned: “Normally the Fed doesn’t expect a recession. So if they can see this coming, that probably means it’s going to be huge.”

Peter Schiff on the banking crisis, financial crisis and recession

Gold expert and economist Peter Schiff warned in a recent interview on Trader TV Live that the current banking crisis is not over and that a much worse financial crisis will follow.

Schiff explained that “everyone talked about a banking crisis” but “nobody wanted to refer to it as a financial crisis”. He exclaimed, “No! This is a financial crisis. The financial crisis of 2008 was also a banking crisis unless people forget that it is the banks that fail.” The economist stressed:

This is the cusp of a crisis. It will only get worse if you try to refuse him.

He compared the current crisis to the subprime mortgage crisis, noting that the Fed says, “It’s just two banks. It’s just Silicon Valley Bank or Signature Bank or the other bank that failed. It’s like when the subprime mortgage explosion first happened, no one wanted to admit it was Mortgage crisis. They just said, “Oh, they’re just contained in these subprime mortgages.” Don’t worry about it, there’s nothing to see here, it’s not a big deal, it’ll just be over… That’s exactly what they say now: “It’s nothing, it’s no big deal.” However, Schiff argued:

It’s a big deal. nothing.

Regarding the possibility of the big banks collapsing, Schiff said, “These banks are insolvent too. They’re just too big to fail so we won’t allow them but it just means we have to print a lot of money to keep them from failing.” However, he warned that the federal government bailing out depositors of Silicon Valley Bank and Signature Bank, but not the small banks, “will create a stampede for these small banks,” emphasizing: “It’s going to create a big problem.”

Commenting on the minutes of the Fed’s meeting released on Wednesday, Schiff tweeted: “According to the last minutes, the Fed is no longer expecting a soft landing, but rather a mild recession. What makes the Fed think that the recession will be mild?” He continued:

Normally the Fed does not expect a recession. So if they can see this coming, that probably means it’s going to be huge.

Do you agree with Peter Schiff? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.