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There Is a Reason Why Retail Is Crashing and It's Not Amazon, Peter Schiff Says

Amazon vs. the retail sector.

Retail stocks have slumped this year.

While many chalk up the declines to competition from online retail behemoth Amazon (AMZN) - Get, Inc. Report , famed market expert Peter Schiff, CEO of Euro Pacific Capital, doesn't agree.

"Amazon has been here for a long time - this is the worst year for retail - it's worse than 2008 and 2009," he said. "This is because consumers are broke - they have lousy jobs, they're loaded up with debt and they can't afford to buy stuff."

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He pointed to Foot Locker's (FL) - Get Foot Locker, Inc. Report 25% decline on Friday.

Schiff isn't comforted by the double-digit gains in earnings growth for the past two quarters in U.S. stocks.

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