With market participants reeling in the new all-time high in the Dow Jones, Peter Schiff is predicting this "misplaced optimism will lead to a "worse collapse than in 2008."

Schiff, the eternal provocateur, suggests the Fed’s extraordinary support of bond and housing markets will lead to a market crash as interest rates rise, leaving banks, mortgage originators, and lenders stuck with homes and low yielding loans as the economy slows, exacerbating the decline and throwing the economy into a deeper crisis.