Prepare for U.S. economic downturn, author says
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BOSTON (MarketWatch) -- You don't have to look hard to find people who are pessimistic about the stock market or the economy, but few of them have an argument that is so compelling that it makes a diehard optimist want to act.
In a radio interview with Chuck Jaffe, senior columnist for MarketWatch, Peter Schiff, author of "Crash Proof: How to Profit from the Coming Economic Collapse," propounded a flavor of pessimism that wouldn't actually scare investing bulls but might make them change their tune.
The crux of Schiff's book is that America's economy is inherently flawed, producing too little itself. If the country imports what the world produces without exporting much back -- and if people and businesses don't save, but instead borrow money -- there's a real question about sustainability.
That's why Schiff is predicting a severe real estate downturn, one he says that is well underway, and "the mother of all recessions."
