Stocks Plummet as Market Wakes Up to “Real Crisis,” Says Peter Schiff Posted Apr 27, 2010 04:39pm EDT Fear of a sovereign debt crisis in Europe resurfaced Tuesday, sending stocks tumbling around the globe. In the US the Dow shed 213 points and the S&P lost 28 points. Meanwhile, gold rose to its highest level in 2 weeks, hitting $1165 per ounce at its intraday peak. In other words, today was a great day for Peter Schiff, president of Euro Pacific Capital. “A lot of people were confused they thought the market going up was somehow ratifying what the government had done that the stimulus and bailouts were good and the economy was improving it’s not,” Schiff says. “The economy is in worse shape than in 2008.” Rather than resolved the crisis, all we’ve done is papered over problems in the banking system with “phony accounting” and “dug ourselves deeper into debt,” says Schiff, a longtime deficit hawk. The crisis of 2008 was merely the “overture” to the “real crisis” Schiff (still) sees coming: “The real crisis is going to be a currency crisis, a funding crisis, a sovereign debt crisis and that’s when we have to pay the piper,” he says. “We’re in very bad shape. Sovereign credit risk in the US is just as great — if not greater than [in] Greece.” Even the most casual watchers of financial media know that Schiff has been saying much of the same thing for a long time now. Clearly, the US stock market and the dollar have fared better in the past year than Schiff expected (at least …