When the fed raised rates the last time ,stepwise & slowly it didn't work as planned and I think they're going tohave a helluva time normalizing.
2)Keeping savings is putting money to work . (sure I'd rather be a VC) I just believe Peter schiff on this.
That notional value didn't help AIG. The pt. Is that nothings changed in the financial system. 1 quad means things are riskier than ever.
"The pt. Is that nothings changed in the financial system"
Actually, a ton has changed in the financial system - some good and some bad. Banks are larger than ever (bad - more potential systemic risk), but they're being more strictly regulated (probably better). Mortgage rules now exist that didn't exist in the housing bubble (generally good) - but Fannie and Freddie are the only game in town. Our bailout of Fannie/Freddie has now paid back the invested capital. And we haven't hit the hyperinflation that Peter Schiff and other similarly ill-informed pundits said would happen. The notional value of the derivatives contracts says nothing about the risk - just total exposure.
>When the fed raised rates the last time ,stepwise & slowly it didn't work as planned
You mean how when they raised rates in part to prick the housing bubble? How did it not work "as planned"? When the economy heats up and inflation is a risk, rates will rise. This is the business cycle.
>I just believe Peter schiff on this.
Being as how he's been wrong on just about every public prediction he's made, and his hedge fund gets crushed both during the crisis (which he "predicted") and since, I think you'd do better to expand the borders of your economic prognosticators.
Well my 1st expansion was looking at the bandwagon of ( Rogers, faber, schiff,...) I was about to invest at the peak of dot com but reading them kept me out
Didn't buy during house bubble- I was wary of what this group was saying - but I couldn't convince my condo flipping acquaintances - my chicken little perception faded a bit. I do notice that it's very hard for analysts to be flexible , thus titles like perma bear/bull...
That notional value didn't help AIG. The pt. Is that nothings changed in the financial system. 1 quad means things are riskier than ever.