Peter Schiff, economist and candidate for US Senate, comments on the Goldman Sachs hearings in the Senate and explains why the greater blame for the financial crises lies with the government and Federal Reserve.
“The Congress constantly beefs up the Fed, cuts rates, stimulates the economy, lowers rates. The consequence of those low rates was a housing bubble. It was all those exotic mortgages that blew up, and now they’re going to blame Goldman for it.”
Schiff believes the regulatory reform bill is a waste of more resources and time and does nothing to address the root cause of the financial crises. “It was all government subsidies and insurance that created the moral hazard,” he says. “It isn’t a free market problem, it’s not a capitalistic problem, it’s a government problem.”
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