Markets worldwide are taking a beating on a Black Monday. The Dow Jones started off the day shedding 1,000 points before ending the trading session in the red by more than 500 points (SEE: Stock Market Meltdown – a brief look at Monday’s market openings). Asian stock markets also lost an astronomical amount during the trading day.
Monday’s evisceration of gains has led many to ask the question: will Federal Reserve Chair Janet Yellen raise interest rates next month? It was a sure this for the past couple of months, but after stocks in nearly every sector and category lost a significant amount, the confidence economists had may have been wiped away.
Peter Schiff, CEO of Euro Pacific Capital, has been steady in his belief that the United States central bank would not raise interest rates this year. He cited enormous debt levels, a fragile economy and a stock market that can’t function on its own without any help from the Fed.
As everyone has laughed at him throughout much of 2015 for maintaining this stance, Schiff reiterated it again on Twitter during Black Monday.
Here are some of his tweets:
“The Dow Jones drops 1,000 points on the open. Is Janet Yellen getting ready to blink on rates yet?”
The Dow Jones drops 1,000 points on the open. Is Janet Yellen getting ready to blink on rates yet?
— Peter Schiff (@PeterSchiff) August 24, 2015
“If the Fed raises interest rates, we will finish the financial crisis that began in 2008, only this time its going to be much worse.”
If the Fed raises interest rates, we will finish the financial crisis that began in 2008, only this time its going to be much worse.
— Peter Schiff (@PeterSchiff) August 24, 2015
“If the Fed doesn’t raise rates to avoid another financial crisis, and launches QE4 instead, the ultimate dollar crisis will be much worse.”
If the Fed doesn’t raise rates to avoid another financial crisis, and launches QE4 instead, the ultimate dollar crisis will be much worse.
— Peter Schiff (@PeterSchiff) August 24, 2015
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