Which super-investor told the Fast Money team Thursday that the dollar is going to drop "like a stone"?

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Which super-investor told the Fast Money team Thursday that the dollar is going to drop "like a stone"?

Answer: Peter Schiff


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The Man Who Called The Collapse

Posted By: Lee Brodie | Web Editor
CNBC staff and wire reports

No one knows what the future holds, or do they? It looks like celebrated investor Peter Schiff might have a crystal ball.

The Prediction

Almost two years ago he predicted that the financial markets were heading for crisis. At the time he told CNBC, "We're on the verge of a major, major recession that's probably going to start by the end of this year, maybe early next year. The housing market is just beginning to unravel. We're seeing the tip of the iceberg here.”

In fact he went on to compare the economy to the Titanic then added, “I am here with the lifeboat trying to get people to leave the ship.”

According to Schiff, investors believed asset prices, real estate prices, and stock prices would go up indefinitely. But, as you know, it was a bubble. Now, markets are correcting for these imbalances.

What's Next?

Of course that begs the question, what’s next?

On Thursday’s Fast Money Schiff tells us, “For the past several years people thought we had a real economy and we didn’t. We had a bubble. All we did is borrow a trillion dollars from the rest of the world and now we can’t pay the bills.”

And he prescribes some bitter medicine.

He feels we need higher interest rates, not lower. And he recommends allowing bankruptcies to occur, and the liquidation of debt. “That probably means companies go bankrupt and people lose their jobs.”

The Trade

Seems like a tough thesis to trade. But Schiff has a few suggestions. “I’d be buying some of these dips in commodities and buying stocks abroad and getting out of the dollar. Because the dollar is going to fall like a stone.”

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Pete Schiff is the author of author of “The Little Book of Bull Moves in Bear Markets” and “Crash-proof: How to Profit From the Coming Economic Collapse”

To see our entire interview with Peter Schiff please watch the video.





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Trader disclosure: On Nov.20, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Karabell Owns (AAPL), (C), (CSCO), (GOOG), (JPM), (UYG); Najarian Owns (AXP) Put Spread; Najarian Owns (C) Puts; Najarian Owns (CVX) Put Spread; Najarian Owns (IYR) Puts; Najarian Owns (IYR) Puts; Najarian Owns (SCHW) And Is Short (SCHW) Calls; Macke Owns (SDS), (MSFT), (WMT), (UUP); Macke Is Short (YHOO)

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