CHESSNOID

It is kind of funny to watch Peter Schiff debate the experts in 2006 when the housing and stock euphoria still existed.  Of course, back then Schiff was a minority in his views and since most people owned homes back then, people wanted to believe the “experts” because it benefited them.  His observations were dead on right, but the experts just wanted to believe he was being overly pessimistic.

Fast forward today 2009, he has some ideas on how to fix the economy.  It might be a good idea to listen to his ideas because he doesn’t go with the herd and has excellent critical thinking on the overall economy based on his good observation skills.

Forbes:

While Schiff’s mood has gotten a boost from his newfound fame and enhanced status, his outlook for the U.S. economy has only grown grimmer while watching the federal government throw unprecedented amounts of capital into circulation to prop up banks and car companies. A response, he likes to point out, that he also predicted. “I’m as negative as I’ve ever been,” he says, “because everything the government is doing now is going to make the situation much, much worse. They’re trying to reflate this bubble. All along I knew that what would potentially be fatal wasn’t the recession itself but the government’s response. But what they’ve already done exceeds even my worst-case imagination.”

Last year Schiff was an economic advisor to the presidential campaign of libertarian Congressman Ron Paul of Texas. Like Paul, Schiff is an adherent of the Austrian school of economics, which advocates a laissez-faire approach. And Schiff’s prescription for how the U.S. can dig out of our current mess comes straight out of the libertarian playbook: Shrink the government radically, cancel all bailouts immediately, take plenty of tough medicine, and let the free market do its job – however harsh it may be for, say, autoworkers in the meantime.