Federal Reserve Is Out of Tools During the Next Recession, Warns Peter Schiff
The Federal Reserve boosted the stock market from the 2008 crash, but it's out of tools for the next downturn.
That's the assessment from Peter Schiff, CEO of Euro Pacific Capital.
"They were successful in reflating yet another bubble but I think this bubble will be the similar fate as the prior two," he said in an interview with TheStreet's Scott Gamm, referring to the 2008 and 2000 market downturns. "The difference is, the third time is not going to be the charm - it's going to be three strikes you're out."
According to Schiff, the market could still rise from here, but the eventual crash would be painful.
"Let's say the Dow goes to 30,000, if it gets cut in half, that's 15,000 - that's still a low lower than it is right now," he said.
The Dow currently stands at 22,772. A move to 15,000 represents a 34% move to the downside.
Follow @ScottGamm on Twitter.
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