Earlier this week we highlighted the back-and-forth between Peter Schiff and Michael Shedlock. Shedlock claimed that despite Schiff’s claims of prescience about the crisis, his clients actually did badly last year, burned by bets against the dollar and on foreign stocks. Schiff responded saying Shedlock was just trying to denigrate a competitor.
According to Barry, the fight isn’t going away:
Regardless of the motivation, in a meticulous, fact-based post, Shedlock highlighted the poor investment returns Schiff has generated in 2008. Through the grapevine, I have heard that Schiff was livid, and is threatening a lawsuit.
Too late: I understand more fireworks are coming, via a major media outlet that picked up the specific details from Mish, and independently verified them. Look for a major story soon (possibly as early as Weds/Thur). As is so often the case these days, a blogger discovered something newsworthy, and the MSM picked up on it afterwards.
This is kind of unfortunate, since both guys are among the more astute observers out there. Schiff’s critique of US recovery plans should be taken seriously, but of course one’s understanding of economic theory doesn’t tend to have much connection to investment performance. How many respected economists have actually had funds? Notice Roubini has smartly decided not to parlay his forecasts into some kind of money management gig at a hedge fund. Much safer and (still lucrative) to be a major media force without putting money on the line.
Update: A tipster tells us that the WSJ is the major media outlet that will do something on this hot story.
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