Friday, January 9, 2009
Peter Schiff Warns of the Bubble in Treasurys
Note that I am not simply heeding him, since he was was right about the the housing bubble. If I had briefed him before this interview, I couldn't have been happier with Schiff's responses (HT2LRC):
Unfortunately, I think what's going to happen to a lot of regular Americans is this: They got spanked in their stock portfolios in 2008 while government bonds did very well. So, they are now shifting out of stocks and into fixed-income assets. But then in the next few years (probably 2009 but I'll give myself a cushion), I think it is unavoidable that U.S. interest rates, even on Treasury debt, are going to skyrocket with the CPI. Even though equity in U.S. corporations and real estate won't be a great thing, it will be better than owning a stream of green pieces of paper.
Unfortunately, I think what's going to happen to a lot of regular Americans is this: They got spanked in their stock portfolios in 2008 while government bonds did very well. So, they are now shifting out of stocks and into fixed-income assets. But then in the next few years (probably 2009 but I'll give myself a cushion), I think it is unavoidable that U.S. interest rates, even on Treasury debt, are going to skyrocket with the CPI. Even though equity in U.S. corporations and real estate won't be a great thing, it will be better than owning a stream of green pieces of paper.
Comments:
Nice that looks pretty good. If that doesn't do well for you over the next two years then this blog is worth its admission price.
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