Of course that begs the question, what’s next?
On Thursday’s Fast Money Schiff tells us, “For the past several years people thought we had a real economy and we didn’t. We had a bubble. All we did is borrow a trillion dollars from the rest of the world and now we can’t pay the bills.”
And he prescribes some bitter medicine.
He feels we need higher interest rates, not lower. And he recommends allowing bankruptcies to occur, and the liquidation of debt. “That probably means companies go bankrupt and people lose their jobs.”
Seems like a tough thesis to trade. But Schiff has a few suggestions. “I’d be buying some of these dips in commodities and buying stocks abroad and getting out of the dollar. Because the dollar is going to fall like a stone.”
Pete Schiff is the author of author of “The Little Book of Bull Moves in Bear Markets” and “Crash-proof: How to Profit From the Coming Economic Collapse”
To see our entire interview with Peter Schiff please watch the video.
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Trader disclosure: On Nov.20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Karabell Owns (AAPL), (C), (CSCO), (GOOG), (JPM), (UYG); Najarian Owns (AXP) Put Spread; Najarian Owns (C) Puts; Najarian Owns (CVX) Put Spread; Najarian Owns (IYR) Puts; Najarian Owns (IYR) Puts; Najarian Owns (SCHW) And Is Short (SCHW) Calls; Macke Owns (SDS), (MSFT), (WMT), (UUP); Macke Is Short (YHOO)