The Wall Street sell-off could mean that the market bubble may have popped, said veteran stockbroker Peter Schiff. He has been warning that the air has been coming out of the stock market bubble for a long time.
The day after he called the surging market “the biggest bubble ever,” the Nasdaq broke the 12,000-point level for the first time ever. In the following days, the Nasdaq had its worst collapse ever with the tech index losing 10 percent of its value. According to Schiff, we could be setting up for another October crash.
“Again, this is the biggest bubble ever and so it’s not going to die easy. And so, it’s certainly possible that the bulls can get this under control with the help of the Fed,” said the Euro Pacific Capital CEO.
Even as the stock market is tanking, Federal Reserve Bank of Chicago President Charles Evans called for more government fiscal stimulus and said more quantitative easing (QE) is in the pipeline.
“I don’t think it’s a coincidence that the Fed is coming out with more QE when the market is getting killed. And so, the Fed is trying to rescue the market by dangling the prospect of more QE,” said Schiff.
“As I said, this is the biggest bubble. It is completely irrational. And it’s going to end badly. And it may have already ended. But the bad part is yet to come,” he warned.
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