Monday, August 24, 2009
“We had a very powerful rally starting at the beginning of the year and after March many emerging markets have gone up over 100 per cent or so. So, a correction is nothing unusual at this stage of the cycle. Although the global economy has stabilized, we are not out yet of the woods and valuations have become somewhat stretched. Stocks didn’t go up necessarily because of improving fundamentals but because of liquidity injection and large stimulus package from all over the world,” said Dr Marc Faber speaking author editor and publisher of the Gloom Doom and Boom Report and investment guru in an exclusive interview with the economic Times ET Now speaking about the the global markets
Saturday, August 22, 2009
Dr. Marc Faber is often quoted in both national and international media. He has appeared at one time or another in virtually all financial media such as Bloomberg, CNBC, etc. and is a regular contributor to several leading publications around the world, Forbes and "International Wealth" a sister publication of the "Financial Times" amongst them. Others include Die Welt, Finanzen, Boerse, Swiss Radio, Apple Hong Kong and Taiwan, Quamnet, Winners, Wealth and Oriental Daily. These, he writes on a regular basis. He also writes occasionally for the Herald Tribune, Wall Street Journal. He is the Editor and Publisher of The Gloom, Boom and Doom Report and his website can be found at GloomBoomDoom.com. In this interview Marc talks about dubious financial practices, deflation, inflation, hyperinflation, effects of hyperinflation, the U.S. stock market, excessive financial speculation, stimulus packages, the U.S. Dollar, The Fed, Bernanke and much more.
Thursday, August 20, 2009
The big question is when is the Chinese economy also implode " may be it will happen in 2010 , in China there is an investment bubble ...the total collapse is ahead of us and probably a world scale war...
Monday, August 17, 2009
Wednesday, August 12, 2009
"Basically what we have this bull market in assets between 2002 and the end of 2007 early 2008 and a weak dollar during that time , 2008 was the opposite , a strong dollar and all assets markets went down except for bonds and now in 2009 we bottomed out on the S&P at 666 in march and since then have rallied strongly and in emerging markets even more but the dollar was weak , and I expect now may be for the next couple of months a period of recovering dollar and a correction time in asset markets " says Marc Faber "The Us is the least cyclical economy as Professor Roubini pointed out emerging economies are essentially more cyclical than the US economy , they're like a warrant on US economy , and I think in a scenario where growth will be disappointing , I think emerging markets are kind of vulnerable they also become the favorite investment destination by momentum players , and I think we had huge increase in stock prices a lot of markets have doubled in price between march and just now a couple of days ago and so a correction is possible , but having said that I would also argue that the worse the global economy is the more stocks could go up because we have all these central bankers who are nothing else than money printers " "they created first the NASDAQ bubble and then the housing bubble and now they want to create another bubble to bail them out and that's of course not a recipe for a healthy sustainable growth"
"Usually an economic and financial crisis leads to some fundamental changes. That is the purpose of a recession, of a depression, to clean the system," said Faber
"Let the derivatives players go bankrupt and the system is clean," "The total breakdown of the system is ahead of us and it will devastate the global economy."
"My view is that the Fed and the other central bankers will leave interest rates far too low and far too long," Marc Faber added.
Friday, August 7, 2009
Marc Faber has just released his Gloom Boom & Doom Report in which he goes more in depth into the inflation vs deflation debate
"If deflationists are right (and they could be right in the near term, in my opinion), then the US government bonds and the dollar will rally, while stocks, commodities, real estate, and lower-quality corporate bonds will tank. But if I am very confident about making one prediction, it is that, if we have further deflation in the immediate future, there will be not one more, but many more stimulus packages and further massive monetisation. So, government debt-to-GDP could easily double within five years. Now, does anyone seriously think that the dollar and government bond prices wouldn’t at some point begin to reflect concerns about the financial condition of the US under these conditions? " Marc Faber said in his report
click to read more of Marc Faber's Gloom Boom & Doom Report of August 2009
Saturday, August 1, 2009
In a presentation at the Prospectors and Developers Conference in Toronto back in March, Dr Doom Marc Faber summed up very elegantly by saying : "You want to own commodities in the ground, not derivatives at Citigroup."
Wednesday, July 29, 2009
"There is a bubble that the FED and the government are creating right now and this is a bubble in government debt, in the size of it. They are being very successful at that.
Eventually the US Government will go bankrupt the way California is almost bankrupt, but that will take some time. The next bubble in my opinion can be a bubble again in equities." Marc Faber told Bloomberg TV early this week
Marc Faber was also a speaker at The Agora Financial Investment Symposium in Vancouver and had an hour long interview with CNBC Asia here are some of the quotes from Marc Faber :
The world has not seen the end of the financial crisis and the recent surge in markets was a result of excess liquidity coming from central banks, Marc Faber told CNBC in an interview.
"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber, author of the Gloom, Boom and Doom Report, told CNBC in remarks reported on its website.
"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months -- the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.
Faber, who did not forecast a precise time for that crisis, told CNBC that firing half the government workers in the world would be one way of dealing with the crisis.
"If you shift government activity to the private sector the economy becomes more dynamic," Faber said. (Reporting by Ajay Kamalakaran in Bangalore)
We haven't seen the last of the crisis despite all talk about green shoots, and the surge in markets was caused by nothing more than the excess liquidity coming from central banks, Marc Faber, author of the Gloom, Boom and Doom Report, told CNBC Friday.
"If you pump money into the system and you create large fiscal deficits, you create volatility," Faber said.
"We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months… the ultimate crisis will happen much later, and the ultimate crisis would clean the system," he added.
Asked when this would be, he said he could not forecast a precise timing: "it may be 5 years time, 10 years time, but that's not the last crisis."
There are two opposing views, those who believe deflation is the big danger, with asset prices and demand collapsing, and those who think the biggest risk is inflation and a weak dollar, Faber said.
"In general in a crisis such as we have today where there is a deficiency of demand and huge overcapacity under normal conditions you would have deflation… now comes in the government and creates these huge deficits," he added as an explanation for his belonging to the "inflationists" camp.
"Already you have money-printers Mr. Bernanke and Mervyn King… we have never had this experiment in the history of mankind, all governments throwing money at the system," Faber said.
One way of dealing with the crisis would be to fire half the government workers in the world, "because if you shift government activity to the private sector the economy becomes more dynamic," he said.
"It's a transition time that is maybe painful. Why does California have these problems? It's not that there are too many teachers in California but the education department is very bloated," Faber added.
Sunday, July 26, 2009
This Crisis has brought more entangling between Wall Street The Treasury and the Federal Reserve Marc Faber
Your portfolio has come up a bit would you be confident the crisis is actually over as some governments pretend that we have seen the end of the tunnel : Marc Faber the editor and publisher of the Gloom, Boom and Doom Report from Vancouver where he was a key speaker at the Agora Financial Investment Symposium this 21 July says " I think the various coordinated fiscal and monetary measures around the world they stabilized the economy , and after having collapsed between September of last year and march of this year we can have a rebound in economic activity , but I mean if you look at Caterpilla actually revenues are contracting and earnings were better because they fired a lot of staff they laid off 35 000 people but if you think about it the laid off people are actually the customers of somebody else , so I think that the economy is going to rebound somewhat and probably will have another dip and the final crisis may only happen in five years time because do not forget this crisis and the crisis essentially should solve the problems and clean the system , this crisis so far has actually aggravated the system and has brought about more entangling between Wall Street The Treasury and the Federal Reserve , and a lot of misguided practices that are detrimental to the health of the economy " You should own foreign shares partly resources stocks and partly shares in Asia and I would own some physical Gold silver and platinum said Marc Faber
Dr. Marc Faber Tomorrow's Gold
Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager.
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