Peter Schiff Says The Truth in 2006

Watch someone state the obvious and get ridiculed by trickle down cultist Art Laffer. It is so sad to see a washed up economist like Art Laffer talk about how great the US economy is while debt is shooting up faster than a junkie lottery winner.

This artificially low interest is the best point of the whole video. Since the mortgages were largely adjustable, the rise in interest rates that occurs when money get tightly squeezed makes homeowners unable to repay mortgages as they maxed out thinking the ARM was set in stone. Instead, the money has dried up and retail is falling as a result.

Wealth is illusory in the modern context because the asset valuation is not based on any kind of reasonable trade standard, IE a house is worth this much because that is the stable price for a house in the area, but instead it is being set by third parties such as appraisers and rating agencies. The worst part comes from the conflict of interest that the same ratings agents get money from the firms they rate. It is like believing a fake watch it really a Rolex because the dealer says it is such. Why would a shady person at a bus stop be any less reputable doing this con game than a white collar thief on Wal Street?