I recently pointed out on Lew Rockwell's blog that Luskin still is fixated on going after Schiff, and Luskin fired back, calling me a "mafia capo":
"Austrian" mafia capo Bill Anderson accuses me of "attacking" his boy Schiff by posting the above, claiming that the quotation from Time is something I "declare" rather than an external authority whom I quote. Can these thin-skinned idiots even read?Actually, I CAN read, and this is what was in the entire paragraph from Time, not just the small passage that Luskin cherry-picked:
This year, though, Schiff's TV bookings are down 75% to 85%, says his younger brother Andrew, who handles p.r. for him. About the only things written about him lately have been negative--the result of financial blogger Michael (Mish) Shedlock's pointing out that Schiff's investment recommendations were money losers in 2008. How could a bear have managed to lose money last year? Schiff was blindsided when global investors piled into dollars and U.S. government bonds during last fall's panic. But that rush to safety has already abated, and over longer periods, Schiff's decade-old strategy of steering clients out of U.S. securities and into commodities and overseas stocks has been a big winner. His investment record surely can't be the reason for his fall from media grace. (Emphasis mine. What I put in italics is what Luskin left out.)
Time added the following:
No, the main issue with Schiff seems to be that he hasn't changed his tune--and it isn't a pleasant tune to listen to. He thinks the "phony economy" of the U.S. is headed for even harder times. He believes that the crisis-fighting measures coming out of Washington are merely delaying the inevitable, debasing the dollar and loading future taxpayers with huge debts.
Why all the invective from Luskin? First, it is personal with him. Luskin got me a gig last fall with Forbes Online to write something about Paul Krugman receiving the Nobel Prize in Economic Science, and I produced "Krugman in Wonderland." Therefore, Luskin now believes that I somehow have betrayed him and am holding on to faulty economic reasoning.
Second, Luskin is a pal of Larry Kudlow, who claimed for a long time that there was no housing bubble, that President George W. Bush's policies were great, and that we were going to have prosperity for many years. When the wheels came off late in 2007 and especially last year, Kudlow had nowhere to turn, as he and his fellow commentators were caught with their pants down.
Third, Luskin and Kudlow have hated Schiff ever since he told Arthur Laffer in 2006 that we were headed for a deep recession, and that the government's scheme of printing money and selling debt abroad was going to run into a brick wall. Anything that contradicts Laffer and Kudlow is heresy to that crowd, and what is worse, Schiff really was right.
Today, Kudlow and the others are behind the government's plan to inflate our way out of this crisis, while Schiff rightly notes that the government's economic policies are a disaster. True, Kudlow and Luskin do not support Obama, but they were firmly behind last year's bailouts and attacked anyone who said that the bailouts would make things worse.
Anyway, I cannot say that I am the best "capo" for the Austrian Mafia, but nonetheless I will put the analysis of Austrian Economics against anything that Kudlow and Luskin throw out there.