Besides poor performance, what do Merrill Lynch, Bear Stearns and Morgan Stanley all have in common? Well, FOX news recommended them as "astonishingly well-run companies". That was just a year ago when Merrill Lynch was trading at $98 a share; today, at the time of this writing, it's at $11.56 a share. In that same broadcast they recommended Goldman Sachs at $175.00 per share, calling it the "Dolce-Gabana" and the "Creme de la Creme" of Wall Street. Today, it is at $65.00 per share. They said homeprices would be up 10% and they even said that 2008 would be the perfect storm for investing, calling the subprime crisis a "tiny problem". These nutcases were even stupid enough to recommend Washington Mutual as the best stock of 2008. To add to the hilarity (and insanity), they even had the gall to place an image of Champagne besides this proclamation!
(For some point of reference, Washington Mutual's failing is considered the largest bank failure in the history of the world. This bank failure is so astronomical in scope that the previous ten bank failures combined are not as big as WaMu going under.)
Peter Schiff is the only person among this group of clowns that realized the coming crisis. He is literally laughed at by Art Laffer, the idiot who convinced Reagan to cut taxes only for the rich and screw the rest of the country. They call Schiff off base, yet turns out, he was right. Schiff says it perfectly: "The basic problem with the US economy is we have too much consumption and borrowing and not enough production and savings. And what's going to happen is the American consumer is basically going to stop consuming...and when you have the economy at 70% consumption, you can't address those imbalances without a recession."
Watch the video, if you can do it.