Several years ago, I had lunch with the former head of a large investment bank who talked about how Wall Street had a built-in bullish bias, and anyone who goes against the grain, does so at their own peril. Below you’ll find a good example of that. Here we have Peter Schiff, head of Euro Pacific Capital, sounding the alarms repeatedly on Fox “News” in 2006-07, making predictions that turned out to be remarkably right, and watch the scorn that gets heaped on him. Imagine if the grown ups had bothered to mind the store during the past decade, to see some of the obvious problems mounting. We might all be breathing a bit more easily today.
via The Daily Dish
There is a very good recent article by Niall Ferguson in Vanity Fair that is consistent with Schiff’s comments. Here is the link:
http://www.vanityfair.com/politics/features/2008/12/banks200812.
Laffer’s latest book is called “The End of Prosperity” and from what I have read from him recently, he sounds a lot more pessimistic these days.