Here you go HP'ers - some great insights from The Man Himself, Peter Schiff, who was kind enough to do Five Questions with us today.
Join me if you will in thanking him for his time, and his spot-on advice these past few years. Mike Norman and Tom Adkins must hate this guy.
HP: Assets including stocks, commodities and real estate are all deflating, while inflation is roaring. What's the best way to protect your wealth in this environment?
Schiff: Stay out of the deflating assets, which include real estate, most U.S. stocks, and all U.S. dollar denominated bonds and other debt instruments. Invest in foreign currencies, foreign stocks, precious metals, and commodities. Commodities are not deflating bubbles and recent declines merely represent pull backs in bull markets that should be bought.
HP: Are you surprised that Angelo Mozilo and Michael Perry haven't been arrested yet?
Schiff: No, and I am not sure that their actions will be considered criminal. The real criminals are in government and the Fed. I would like to see a few of them arrested, but I won’t hold my breath.
HP: Obama or McCain, or does it not matter?
Schiff: I do not support either candidate, but have mixed feelings about who I would prefer, thought I will vote for neither. McCain would appear to be the lesser of the two evils, but given how bad the economy will be during the next presidential term, it might be better to have Obama win as he and his big government philosophy will get the blame. That might set the stage for a Ron Paul Republican to take the White House in 2012 and bring about change for the better.
HP: Is the recent housing gambler bailout just the beginning of socializing this crash?
Schiff: Believe it or not the damage from the housing “bailout” will exceed the damage from the bubble itself. It’s typical for the government to first create a problem and then exacerbate it though misguided solutions.
HP: You still rent we hear. Any thought of buying yet? What's your signal to buy?
Schiff: Not a one. In fact, with more and more rentals coming on the market, there has never been a better time to be a renter. Government “bailouts” may slow down the pace by which real estate prices fall but ultimately lead to an even bigger decline. We are still closer to the top of the real estate market then the bottom. Patience will be rewarded, especially if none of your purchase money is saved in dollars.