Tuesday, November 18, 2008

So who is Peter Schiff and why is he right all the time?

Good questions, hypothetical question asker!

If you never watch Fox News and rarely stay on CNBC when they have a show telling you how to invest, you may have never seen Peter Schiff. I know I hadn't heard of him until a few weeks ago. Peter, not to be confused with fictional district attorney Adam Schiff or actor Richard Schiff, is a financial adviser who is invited on these shows, and for the past few years, when he is on these shows, he is the one gloom and doom guy, while every other guest is talking about how super terrific things are.

Nearly every other guest not only disagrees with Schiff when he says we are heading for a recession and it's going to really bad and last years instead of months and the financial market is to blame, they mock him and laugh at him and treat him like he's a retarded cousin. Art Laffer and Ben Stein are particularly derisive of him on the following clip from The You Tubes. If you guessed by their political persuasion that Schiff must be a liberal because they are Republican hacks, you would be wrong. Schiff is an economic advisor to Ron Paul, and he believes deeply in spending cuts by government.

So if you have ten minutes and find humor in condescending people being 100% wrong, have a few laughs with this. (Note: when Ben Stein said buy Merrill Lynch because it's crazy cheap, it was at about $70 a share. As of this morning, it's under $12. Welcome to the new game show Lose Money with Ben Stein! I wonder if Jimmy Kimmel still has time to emcee.)

If you want to know what the amazing Mr. Predicto Schiff believes is a good investment in 2009, he thinks gold, currently languishing at around $750 an ounce, is going to be at an unprecedented $2000 an ounce sometime next year.

Matty Boy, Investment Advisor to the Stars* likes silver, which plummeted even more severely from its highest highs of 2008 than gold did. Usually the metals climb in tandem and it looks like silver has a greater upside potential. Also, over the past few years, silver outperforms gold for the first few months of the new year, then gold catches up. Buy silver, watch it climb fast for a while, then switch over to gold. Right now, it costs about 80 ounces of silver to buy an ounce of gold, which shows a remarkable lack of value for silver historically. When it climbs back to 60 ounces of silver for an ounce of gold, convert.

*No stars come to Matty Boy for investment advice. He may like silver, but he is currently investing in food and shelter, and he isn't making any cash on either. You are free to take investment advice from Matty Boy, but be advised he is a broke mofo trying to figure out how to cut costs so he can afford the rent come February.

Just sayin'.


CDP said...

There's no justice if you're a broke mofo and Mark Cuban is a billionaire.

dguzman said...

Amen to that, CDP.

Dr. Monkey Von Monkerstein said...

That was brilliant. I loved who they laughed at him.

Matty Boy said...

I try not to get into a "I can't believe I'm broke while _____ is raking in the cash" frame of mind, but it does annoy me occasionally that Ben Stein isn't destitute.

As for Mark Cuban, I've liked some of the movies he has invested in.

Jess Wundrun said...

You can read Ben Stein's latest column here: http://larrykinglive.blogs.cnn.com/few-humble-thoughts-about-the-economy-by-ben-stein/

Wowzie how he's changed. Now old Mr. Free Trader is talking about how only the government can save us.

I am a financial nitwit, but when I couldn't move a house in a declining market in the fall of '06, I said many of the same things Schiff says. The ultra low interest rates only made house prices go up. We all knew an adjustment was coming. I used to have these exact same battles with righties on the interwebs and, too, was told that I was a stupid ninny.

Then again, nobody believed in global climate change either.