An American stock broker and gold bull, Peter Schiff claimed in a series of tweets this week that strict banking restrictions are a factor in the rising economic crisis.
This comes amid the current collapse of significant financial institutions across the US and the need for federal interference sparked discussions to determine the most effective measures to defend the disintegrating economy.
Schiff claimed that “the Fed caused the financial crisis of 2008 and 2023,” and that he correctly predicted both because he “understood the consequences of the Fed’s policy mistakes.”
The economist claimed that the coming economic crisis will be more severe than the previous ones by drawing comparisons with the financial crisis of 2008. Schiff emphasized that “future rate hikes are now pointless.”
Too Much Regulation: Schiff
He said that the government “imposed lots of new banking regulations after the 2008 financial crisis, we were assured that what is happening right now would never happen again.” He countered, though:
“One reason we had the 2008 financial crisis was too much government regulation. That’s why this crisis will be worse.”
Given that Puerto Rico officials recently shut down Schiff’s bank on July 4, 2022, maintaining the ideal balance between rules and financial institutions is crucial for Schiff. It is interesting to note that cryptocurrency business owners have begun to increase their bets on Bitcoin’s historic comeback.
Balaji Srinivasan, a former chief technology officer of Coinbase most recently anticipated that Bitcoin would increase in value to $1 million within 90 days.
Friday saw the Silicon Valley Bank (SVB) filing for the Chapter 11 bankruptcy protection. Additionally, a more thorough investigation of Silicon Valley Bank (SVB) indicated that approximately 190 US banks face the possibility of a depositor-driven failure. It was emphasized that the monetary policies established by central banks could harm long-term investments like mortgages and government bonds, resulting in losses for banks.