There are moments when we will have to choose between what is popular and what is right. And sooner or later everyone has a moment like this (though most of us are parents when it happens).
For the vast majority of people, these decisions – and the attendant consequences – are made in private.
In the case of Peter Schiff; however, not only did he take the unpopular stand in a very public arena, he did so in front of a mob of financial analysts who were vehemently opposed to his opinion.
The economy, he said, is in trouble. As early as August of 2006, he advised financial pundits of a fairly imminent recession. You can see in this video, around minute 2:52, how his analysis is received by the panel. (Minute 3:42 is where the derisive laughter begins.)
While pundits such as Ben Stein were recommending Bear Stearns, Merrill Lynch, and Goldman Sachs, Peter Schiff did not – in fact – take the opportunity to recommend AIG. He was firm; “stay away from stocks”. And, clearly, he was right.
Though I was appalled at how his lone, dissenting opinion was received – with condescension and disdain -I was also inspired.
It takes immense courage to withstand mockery in pursuit of the truth. To go so fully against the tide of public and popular opinion, that your ideas are dismissed outright. To stand apart from 95% of the experts who will, in turn, call you a fool.
And yet, everyone in history worth studying did exactly that.
Unlike Galileo, who never lived to see the popular acceptance of his work, Peter Schiff has seen his predictions become history. And also unlike Galileo, we have the ability and privilege of being able to ask how he did it.
Peter Schiff – President and Chief Global Strategist of Euro Pacific Capital, frequent guest on CNBC, Fox News, and Bloomberg Television, economic advisor to a presidential campaign, author of “Crash Proof” and “Little Book of Bull Moves in Bear Markets” – had graciously agreed to probably the least financial interview he will ever give.
Unfortunately the interview fell through, but not before I had enlisted the aid of Squawkfox, as well as Dan Coleman of OpenCulture in bringing his message to a much larger audience.
Still, I deeply believe that this is a story of courage that needs to be shared, as well as his very astute vision of the looming financial meltdown.
There are many instances in our lives when we will make decisions or express opinions which are so phenomenally unpopular that others will laugh in our faces. Since I won’t be asking Mr. Schiff, I would like to ask you.
How did you manage being theologically stranded ?
How did you handle the outright condescension?
Were you challenged to cease speaking out, and how did you face that?
How do you deal with the frustration of watching people make mistakes that had such vital impact your life?
What part – if any – did managing your business/hobbies play in allowing you to stand firmly against the tide of popular opinion? (Or what has been your greatest source of strength?)
And, finally, is there anything else you’d like to say?





6 comments
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November 24, 2008 at 11:11 pm
thedailydish
WOW. Peter Schiff deserves accolades. It’s astounding how spot-on he was — the ONLY ONE out of all these supposed financial geniuses. Watching those guys laugh at him – man. I cannot imagine dealing with that. BUT WHO’S LAUGHING (or CRYING) NOW???????!!!!
hayden tompkins says:
I don’t understand why people in DC aren’t listening. According to Schiff, the bailouts will screw up the economy even further.
November 24, 2008 at 11:13 pm
Corey
Great clip Hayden! That guy’s a prophet.
hayden tompkins says:
I’m now totally on ‘Team Schiff’!
November 26, 2008 at 1:38 am
mssc54
I can recall this happening to me only once. It was over a very painful experience I was going through.
I just walked away.
hayden tompkins says:
Walking away can take courage too, I think.
November 26, 2008 at 4:38 am
Squawkfox
Sorry to hear the interview didn’t happen. I found so much inspiration from this video. It’s stunning. My “better half” and I were gobsmacked. Seriously.
Personally, I always get laughed at. Always. I feel like I’ve done something wrong if someone isn’t chuckling in my face.
hayden tompkins says:
Well, you are a cultural rebel, so I am not surprised Squawky!
November 26, 2008 at 4:24 pm
Ian
Not to detract from Peter’s mojo, but he’s not the only one who said the bailout is going to ruin the economy even further. I said that before the thing was even passed. I think a lot of Americans could see that it was a bad idea. Of course, Peter did the important thing and spoke up about it over mass media distribution platforms. I hope he keeps speaking up, and I hope he can give a hearty laugh and an “I told you so” to all of those who laughed at him.
hayden tompkins says:
You’re right. Chris and I have been watching the bailout fiasco with utter horror. Why do politicians think they are economists?
February 16, 2009 at 5:06 pm
Hyperinflation? Yikes! « Through The Illusion
[...] economic platonic man-crush is Peter Schiff, the man who predicted our current economic crisis over the flabbergasted outrage of the financial [...]