[sickoflibs]

The financial prophet Peter Schiff tried to warn us, see his speech Nov 2006 Peter Schiff Mortgage Bankers Speech Part 2 of 8. Schiff quote : 'Saving is under-consumption in the present for consumption in the future'. Saving is the solution, a recession. In America we consumed in the present for the expense of the future.' Another Schiff quote :"The boom is the problem, the bust is the solution". His economic theory is that you need a recession to get healthy, the sooner the better and says in 2002 we needed one, but this is political death for the elected. Politicians running for re-election need to pump more and more money, borrowed and printed (ie low interest rates), into the economy to look like they are fending off a recession but it only delays the eventual crash and makes it much worse.

[KarlInOhio]

His economic theory is that you need a recession to get healthy, the sooner the better and says in 2002 we needed one,

A recession is a time to prune the dead branches of the economic tree so that the healthy branches can thrive and the tree will grow when spring comes again. The bailout mania is an attempt to save the dead branches at the expense of the healthy branches. Taken to its logical end, the live wood will either be removed limb by limb, or will die and then "need" to be bailed out. The tree will die of that cure.