The Peter Schiff Show Podcast Markets Tank as Stagflation Rears its Head - Ep 1012
Feb 24, 2025
Markets took a sharp dive, with major indexes struggling against fears of stagflation and weak economic data. High inflation expectations weigh heavily, while gold stocks slump despite gold's gains. The surge in Japanese inflation raises concerns for global markets. A tribute to Irwin Schiff highlights his legacy and controversial views on taxation. The podcast also critiques potential populist solutions like Dogecoin dividends and addresses the impact of the recent German elections on political ideologies and economic policies.
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Market Downturn and Stagflation
- Markets tanked on Friday due to rising stagflation fears, impacting major indexes like the Dow, S&P, Nasdaq, and Russell 2000.
- Gold stocks were also hit despite gold making gains.
Fed's Lack of Stagflation Plan
- The Federal Reserve lacks a plan for stagflation, a situation where the economy weakens alongside high inflation and interest rates.
- Their stress tests don't include this scenario, suggesting banks might fail under these conditions.
Falling Consumer Sentiment and Home Sales
- Consumer sentiment dropped significantly due to rising inflation expectations, reaching a 30-year high.
- Existing home sales also plunged due to increased mortgage rates.
