Saturday, December 20, 2014

The Economic Recovery is a Mirage

“This stuff goes on longer than you expect. People were asking the same questions about the housing bubble, which I was warning about for years. They would say ‘well, nothing bad has happened, so what makes you think it’s going to?’ It’s just inevitable.

The fact that we’ve been able to postpone the day of reckoning for so long just makes the problems worse, which means the day of reckoning is worse. The further back into the future we deal with the consequences, the bigger the problems are, the bigger the consequences.

Right now, part of the reason we are able to continue this charade is all of the other countries, particularly Europe and Japan, are in so much trouble that people assume we are the safe haven. They think we are the only economy that is recovering.

We’re not, it’s like a mirage in the desert, and the closer you get to it, you eventually find out it’s an illusion.”

- Source, Peter Schiff via ETF Daily