A decade after the global financial crisis, the world is facing another crash even bigger than the one in 2008, veteran stock broker Peter Schiff, CEO of Euro Pacific Capital, told RT.
"The too big to fail banks are now both bigger than ever, and more exposed than ever to rising rates and recession. So the systemic risks to the economy are greater now than they were in 2008," said Schiff.
Such banks should have been allowed to fail a decade ago, he says. "The moral hazard associated with the government having made the mistake of bailing out banks that should have been allowed to fail. Unfortunately, no lessons were learned from the last crisis. We repeated, and expanded all the mistakes that caused the last crisis, ensuring the next one will be much worse," he said.
According to the investor, all the problems that caused the 2008 financial crisis loom even larger now. "The even worse monetary and fiscal policy since the last crisis guarantees the next one will be much worse. The crisis will be similar in that government will be the cause, everyone will be caught by surprise, and capitalism will be the scapegoat, but it will be much different in that it will be much worse," Schiff said.