Peter Schiff On The Bail-Outs

Peter Schiff was able to predict the housing bubble and economic misery we are in years ago. I like his no non-sense approach to swallowing bad tasting medicine. He thinks the bail-outs only prolong the inevitable:

"So for the same reasons that Washington should not bail out General Motors, the world should not bailout America. Like GM, our economy is in desperate need of a restructuring. Spending must be replaced with savings, and consumption with production. The service sector must shrink and manufacturing must expand to fill the void. The dollar must fall, wages in America must be brought down to a competitive level, and hopefully government spending and burdensome regulation can be reduced.

This transformation will not be fun, but it is necessary. Our standard of living must decline to reflect years of reckless consumption and the disintegration of our industrial base. Only by swallowing this tough medicine now will our sick economy ever recover. By accepting a lower standard of living today, we will eventually be rewarded with a higher one tomorrow."

Ouch! Spoken like a true politician.

Source: Peter Schiff