Economist Peter Schiff has issued a stark warning that the current banking crisis is merely the start of a much greater financial crisis. In an interview with Trader TV Live, Schiff noted that “It’s not nothing [and] it’s going to get much worse if you are going to try to dismiss it.” He argued that the Federal Reserve’s recent forecast of a recession is indicative of a potentially “massive” economic downturn.
The gold bug argued that the situation is reminiscent of the subprime mortgage crisis, when the Fed attempted to downplay the issue. He suggested that the government’s decision to rescue depositors of Silicon Valley Bank and Signature Bank but not smaller banks will cause a “run on these small banks”, leading to a “huge problem”.
Commenting on the Fed minutes released on Wednesday, Schiff tweeted: “…if they can actually see this one coming, it likely means it will be massive.” He warned that the banking crisis is not over, and a much more severe financial crisis is imminent.
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