U.S. Banks: Not Enough Stress in The Tests

There is not enough stress in these tests because they don`t test what is really going to go on. Nobody tests a weak economy and a big spike in interest rates at the same time. The Federal Reserve always assumes that if the economy is weak, interest rates are going to be low and the only way they assume rate hikes is if its a vibrant economy which lifts asset values and makes it easier for people to repay their debts. But they don`t have a stress test that stresses a big drop in the stock market and the real estate market and in the bond market. That we have a repeat of the stagflation of the 1970`s. That is what I think its coming, except even worse than in the 1970`s.

Related stocks: Citigroup (C), Bank of America (BAC), Wells Fargo (WFC), J.P. Morgan (JPM)

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Bullish On Energy Investing

I am a big believer in energy investing and we own a lot of oil companies around the world and we are actually investing privately here in the United States.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Markets: I Think They Have Already Peaked

The bubbles are already there, the only question is are they going to get any bigger or are they already in the process of deflating? I believe that if the Federal Reserve continues tapering they are already deflating. I do not think it is going to be like in 2004 to 2006 where the markets kept going higher while the Federal Reserve was raising interest rates very slowly.

I think that if the Federal Reserve continues on this taper path and if the Fed raises interest rates I think the markets are just going down. I think they have already peaked.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.