[Video] Peter Schiff: Retirement Will One Day Soon Be As Rare As Single Income Households

[Confederate]

Peter Schiff: Retirement Will One Day Soon Be As Rare As Single Income Households
Money With Melissa Francis | Fox Business Network | February 4, 2013


http://youtu.be/ySVwJeXfvFs

[Confederate]

People don't get that with high interest rates, capital must be allocated more efficiently than with lower interest rates. That is what needs to happen, liquidate bad companies and let the better companies buy up their assets. The people loaning out the money will make sure their investment is good and sound, and the economy will benefit as a whole because there will be more better companies. Also, there will be less capital tied up in questionable investments and more capital available for great new ideas so the economy is also more flexible.

[Occam's Banana]

OK. Whew! For a moment there, I thought I had been sucked into the Twilight Zone.

I thought that Spencer Patton guy was the Obama administration Treasury advisor.

Every time he talked, I thought, "WTF? Am I hearing this right? This can't be!"

Then I re-watched the introductions - just to be sure.

Turns out the woman is the Obama administration Treasury advisor.

Now the world makes sense again ... (or rather, the world is still insane in the same, familiar way) ...

[Zippyjuan]

People don't get that with high interest rates, capital must be allocated more efficiently than with lower interest rates. That is what needs to happen, liquidate bad companies and let the better companies buy up their assets. The people loaning out the money will make sure their investment is good and sound, and the economy will benefit as a whole because there will be more better companies. Also, there will be less capital tied up in questionable investments and more capital available for great new ideas so the economy is also more flexible.

On the other hand, there is the opportunity costs of what else to do with money. If you can put it into an account and get ten percent then you will have to find another thing to invest in which offers you a return of greater than ten percent which will reduce the things you are willing to put your money into. If say you think a new idea may yield you a five percent return after your costs and you can get ten percent, you probably won't put your money into that venture. If interest rates are three percent they you might be more likely to invest in it. Thus less investment vs savings when interest rates are higher. (If rates are higher the costs of borrowing are higher as well).

[Henry Rogue]

On the other hand, there is the opportunity costs of what else to do with money. If you can put it into an account and get ten percent then you will have to find another thing to invest in which offers you a return of greater than ten percent which will reduce the things you are willing to put your money into. If say you think a new idea may yield you a five percent return after your costs and you can get ten percent, you probably won't put your money into that venture. If interest rates are three percent they you might be more likely to invest in it. Thus less investment vs savings when interest rates are higher. (If rates are higher the costs of borrowing are higher as well).

Yep, high interest rates are an indicator to not borrow and if it is not artificial in either direction, it will prevent the extreme business cycle.

[RickyJ]

Peter Schiff: Retirement Will One Day Soon Be As Rare As Single Income Households
Money With Melissa Francis | Fox Business Network | February 4, 2013


http://youtu.be/ySVwJeXfvFs

Honestly I wish he would retire. Does he not know what is going on today? Does he have no idea how many people are already retired even in their 50s now because they can't find a job? The guy is so out of touch with reality.

[WarAnonymous]

OK. Whew! For a moment there, I thought I had been sucked into the Twilight Zone.

I thought that Spencer Patton guy was the Obama administration Treasury advisor.

Every time he talked, I thought, "WTF? Am I hearing this right? This can't be!"

Then I re-watched the introductions - just to be sure.

Turns out the woman is the Obama administration Treasury advisor.

Now the world makes sense again ... (or rather, the world is still insane in the same, familiar way) ...

hahahaha I did the same thing... When he started on the FED I was like, wait...what?

[Danke]

Honestly I wish he would retire. Does he not know what is going on today? Does he have no idea how many people are already retired even in their 50s now because they can't find a job? The guy is so out of touch with reality.

What makes it possible for so many to retire in their 50s?

[RickyJ]

What makes it possible for so many to retire in their 50s?

They are not retired by choice!

Damn, I am not in twilight zone am I?

[Danke]

They are not retired by choice!

Damn, I am not in twilight zone am I?

I guess "retired" means something different to me.

Are you saying "unemployed?"