Dr Doom Was Right!

A couple of months back, I had a post about Peter Schiff predicting that the United states was on the verge of a recession.

His reasoning:"What's going to happen is that the American consumer is basically going to stop consuming and start rebuilding his savings, especially when he sees his home equity evaporate," he said. "And when you have the economy 70 percent consumption, you can't address those imbalances without a recession." He also said and I quote, "You're going to start to see both the government and the lenders re-imposing lending standards and tightening up on credit — and these sky-high real estate prices are going to come crashing back down to earth."

When he made these comments, he was ridiculed and people called him Dr Doom. Well the supply side, naysayers like Arthur Laffer are nowhere to be seen.