Peter Schiff explains the economic meltdown part 3

[evilferret132]

.....dam yanks

[aviomaster]

I see WW-III  in the making ...

[hume12345]

england was a power because they controlled access to oil. america is a superpower for the same reason.

[evilferret132]

....england was cause of war (for dimonds gold silver land work force)

and so on til the 1900's when they had a problem

oil only came at 1880 maybe

[wildhorses0]

This man makes a lot of sense. Why can't the the majority of the politicians understand the fundamentals?

[glenbobsoapshop]

they do understand, in fact they understand very well. Its all part of their plan.

[vonleixy]

the biggest problem in america today is that the system is short-sighted. politicians don't care as long as they get their votes. ceos don't care as longs as they can cash their stock options before they leave the office. i am very sick of the fact that large companies lay off people when they are very profitable.

[rationalCrash]

I agree with your first statement but the second is a bit silly. companies laying off people while they are profitable is not the problem. If companies can make more money by laying off people (being more efficient) it is good in the long run. To increase standard of living we MUST get more efficient.

[vonleixy]

I am in the Austrian school and agree with you on the necessary layoffs. The layoff today, however, is very short-sighted, as CEOs just want to pop up the stock price to cash out the options. I often saw top IT firms lay off people this year and hire the next year. One of my former employers, called Huawei, was very patient. As a private firm, they didn't lay off too much during the IT bubble in early 2000s. Now they are beating all the telecom firms in all sectors.

[vonleixy]

Simply put, the delegation model today doesn't work well for the longer term of the economy. We've already seen the disparity between CEO pays and employee salaries. The housing bubble is just another example of playing a short term game under the current system. Agents, banks, insurance companies and all other players are motivated to offer bad loans just for their the short term benefits. Game theories told us that the results will be different between short term games and long term games.