Marc Faber : Short the AUD Australian Dollar

This is what Marc Faber said in a recent interview:

" And as a special tip, I think I would short the Australian dollar, because talking about a housing bubble, Australia has 10 times a bigger bubble than China. In Australia you have what you said we don’t really have in China, namely the low leverage that we have in China, we have the opposite in Australia, very high household leverage. … So I think a big downfall is about to happen."

Marc Faber on bubbles and investment mania

Marc Faber : "Basically, we always have bubbles and investment mania in the world. Even in the 19th century, under the gold standard, from time-to-time investment manias and bubbles developed in railroads and in canals and in real estate, just to name a few. Under a fixed monetary, or gold, standard, where the quantity of money cannot be increased indefinitely; there is a natural limit to the scale of the crisis. Usually when there's a boom in one sector of the economy, you have some kind of deflation somewhere else; that was also the case in the 1970's. We had a boom in commodities, but bond prices collapsed.
What Mr. Greenspan and Mr. Bernanke have achieved is historically quite unique. They have managed to create a bubble in everything, everywhere in the world: in real estate, equities, commodities, art, worthless collectibles; even bond prices continued to rise as interest rates fell due to the loose monetary policy. Since 2007 and 2008, everything has collapsed. But government bond prices continue to rise, and went ballistic between November 2008 and December 2008, when 10- and 30-year Treasury yields collapsed. So my view would be that this was the last bubble they managed to inflate. From here on, the government bond market will fall. In other words, the trend will be for interest rates to actually go up." extract from his interview by Peter Schiff...

Nassim Taleb on the Credit Crunch

Black Swans of course (white ones, grey ones) and getting hate mail from bankers…

Marc Faber Governments are not good at running Banks and Businesses

Marc Faber interviewed by Tony Jones of Lateline ABC Australian Broadcasting Corporation
TONY JONES: "Some of those bubbles are collapsing, but let's look at the bailout package. In Britain, the Government is buying large holdings in some teetering banks, even a majority holding in the Bank of Scotland which is nationalization, because it will have a controlling interest. These are measures of last resort, the question is, will they work?"

MARC FABER: "Normally, governments are not very good at running banks or at running any businesses, especially not the British Government, as we know. We just have to look at public transportation. So I'm very skeptical that it will work very well and we also have to analyze the terms at which these banks are being taken over. Basically, the proper way to go about bailing out the banks is to let the shareholders lose everything at the same time, let the bondholders take a very significant cut and then the Government should come in, recapitalize the banks, nurture them to health and resell them. But to essentially bail out the banks and still let the shareholders get away with it is probably the wrong medicine. "

Marc Faber : Greenspan should never have been a Fed Chairman

Marc Faber :"The problems of the US economy have nothing to do with “global uncertainty”. Greenspan messed it up so royally that he now has to find an excuse for his disastrous handling of the economy over the last 10 years or so. Now, we are paying the price for the ill-fated US belief that all problems can simply be solved by easing, printing money and expanding credit. Mr. Greenspan should never have been a Fed Chairman and future historians will judge him very negatively."
Interview by KWR Int'l

Marc Faber — There is no other way out but to print money

Dr. Marc Faber on Goldseek Radio June 12, 2010

"It is no longer sufficient to analyze macroeconomic and microeconomic trends and individual companies and sectors; we now increasingly need the help of a political analyst who can warn us of what governments’ next regulatory ‘Schnapsideen’ (ideas developed while heavily intoxicated) are likely to be." Marc Faber

Marc Faber on His Book Tomorrows Gold

Marc Faber's book : Tomorrow's Gold

Marc Faber : .."...it is doing very well and it will be translated into several foreign languages. Many people have written to me that the book is one of the most readable and interesting investment books. In my introduction to the book, I wrote that I owe all my knowledge to people from whom I learned a lot including Henry Kaufman. Sydney Homer, Charles Kindleberger, and all the classical and Austrian economists. I also learned a lot from Alan Greenspan, so if I am one day the head of the Zimbabwe Central Bank, I won’t repeat the same mistakes…." interview with KWR Int'l

Nassim Taleb: Look to Mother Nature for Financial Solutions

Nassim Nicholas Taleb is an essayist, belletrist, and researcher.
The Black Swan author Nassim Nicholas Taleb says that solutions to the current financial crisis are simple. "Look at mother nature. Mother nature does not like leverage and mother nature does not like 'too big to fail.'"

Nassim Taleb is the best-selling author of Fooled By Randomness and The Black Swan: The Impact of the Highly Improbable. So called 'Black Swan Events' are climactic, random and hard-to-predict events that have been entirely unexpected, and often hitherto perceived to be impossible.
Taleb is currently a researcher at London Business School. He the Deans Professor in the Sciences of Uncertainty University of Massachusetts at Amherst, Fellow in Mathematics in Finance, Adjunct Professor of Mathematics at the Courant Institute of Mathematical Sciences of New York University (since 1999), and research fellow, Wharton School Financial Institutions Center, and Chairman, Empirica LLC.

Taleb held senior trading positions with trading houses in New York and London and operated as a floor trader before founding Empirica LLC. His degrees include an MBA from the Wharton School and a Ph.D. from the University of Paris. He is the author of Dynamic Hedging, Fooled by Randomness, and The Black Swan.

Investment banks are moving their activities to AsiaMarc Faber Investment banks are moving their activities to Asia

Marc Faber : For the first time in modern history the foreign exchange reserves of Brazil, China, Russia and India are larger than those of the G7 [group of industrialised] nations, representing a fifth of the world's wealth.

Some of this wealth goes to rich individuals so the banks have all moved to Singapore and Hong Kong to open private banking departments. I think that [this trend] is going to grow very rapidly over time.

This is not necessarily at the expense of the old European centres, because some Russian, eastern European and African money comes to Europe. But it is no longer the case that all money comes to the US and Europe.
Source : swissinfo

Marc Faber : Cash and bonds will be very dangerous

SEOUL: Investor Marc Faber said cash and bonds will be “very dangerous” in the next 10 years as governments increase money supply to cover fiscal deficits.

“There’s no other way out but to print money,” Faber, the publisher of the Gloom, Boom & Doom report, said at a forum in Seoul on Wednesday. “In the long run, all paper money will go exactly to its intrinsic value, which is zero.” Faber advised investors to protect themselves with assets such as gold and silver. source Bloomberg.com

Marc Faber vs Arthur Kroeber : Is China in a Bubble

Dr Doom and Dragonomics lock horns over China's Bubble 08 June 2010

Reuters Insider Roadshow Is China in a Bubble : Arthur Kroeber founder of Dragonomics and Marc Faber editor of the Gloom and Doom report :
a crash in China should not be ruled out says Marc Faber
"well i want to clarify my position about China , I have argued for the last three months that the Chinese economy would slow down and that a crash should not be ruled out , it is not that I think that the whole thing will collapse right away , but let me explain to you the contest in which I see China and also the investment opportunities , first of all , we had as you know an economic crisis in 2008 - 2009 during which asset market collapsed and then a recovery recurred but basically what happened is that none of the causes of the crisis which were excessively expeditionary monetary policy under our money printing in the United States that led to excessive credit growth have been addressed , what has been done is essentially through fiscal and monetary measures globally and especially through huge fiscal stimulus to essentially postpone the problem , so nothing has been solved , and where as Mister Bernanke may be an expert on the depression 29 to 1932 he is an expert on the depression except for what caused the depression that has to be clearly understood , and most economist today they essentially do not understand what cases huge monetary and economic instability ....." etc...
Marc Faber to Kroeber : "I do not disagree that if you look at fiscal stimulus in China, at least at the end of the day they have infrastructure. In the U.S. they have nothing but debt, and ignorant people. "
'If you believe your story about China, which I've said, I think in 20-30 years time the Chinese economy will be much larger and more prosperous. People who bought the first U.S. shares at the beginning 1800's, and throughout the 19th century... it was a disastrous investment in the long-term. All they had to do was buy in the last 20 years..."
Kroeber: 'The answer to that is, and I know there are a lot of people here with a lot of experience, but you have no idea how big China is, none of us does. Take steel, people have been talking about over-capacity in the steel industry since China had capacity of 200 million tons, today it has a capacity of about 650 million tons and domestic consumption of 600 million tons. So if China had believed everyone's warning about overcapacity back then they had 200 million tons of steel production, steel would probably be worth as much as gold today. Fortunately, they didn't listen, they built all the steel plants, and they've absorbed most of it."

Note : the transcript is approximate and may not be 100% accurate

CLICK HERE TO WATCH THIS INTENSE DEBATE>>>>

Marc Faber Keynote Speaker on The Kitco Metals eConference 2010

June 05, 2010 — Welcome to the Kitco Metals eConference, an online, two-day event showcasing all aspects of the metals industry, with a primary focus on precious metals.

Investment and networking opportunities in metals exploration, mining, manufacturing, processing and end-use applications will be presented and discussed live and in real time on September 12 and 13, 2010.

Keynote Speakers include Congressman Ron Paul, James Dines, Marc Faber, Frank Holmes and many, many more.

Communicate in real time with presenters, exhibitors and other attendees, through webcam, text, or email.

To register for free, or to receive more information about the Kitco Metals eConference, please visit www.kitcoeconf.com

Marc Faber on Money gold, commodities and equities

Bearish About Everything, But Quite Happy to Hold Physical Gold
Marc Faber, the legendary investor and the author of Gloom, Boom & Doom Report shares his outlook on various asset classes including gold, agri-commodities and equities.
Marc Faber : "In my view, the Federal Reserve has effectively demonstrated it is willing to risk hyperinflation in order to beat back the deflationary forces."
"Stocks could go up and the economy can deteriorate...Government official should stay out of the economy... Mr. Obama and his clowns around him don't understand... they're going to destroy the economy."
“It’s a race in the purchasing power of paper money to the bottom, and the only assets that will, for sure, keep their purchasing power are precious metals.”
“In the long term, as I always said, we are all doomed, but in the meantime, because of the volatility in the markets, you can make money. The key is to know when to stop, and when you stop, how and where to allocate assets.”

Marc Faber speech at the Mises Circle in Manhattan on 22 May 2010

Marc Faber : Mirror, Mirror on the Wall, When is the Next AIG to Fall?

May 28, 2010 — Presented by Marc Faber at "Austrian Economics and the Financial Markets," the Mises Circle in Manhattan on 22 May 2010 in New York, New York. Includes an introduction by Mises Institute president Douglas E. French.

Marc Faber: Make Money On Stocks Volatility While Holding Physical Gold

Dr. Marc Faber told investors to buy stocks on March 9, 2009 when S&P reached its low since 1996, and predicted a 20% decline if the index broke a new high.
Now with the S&P down about 13% from that high, Faber talked to Bloomberg on May 24 about his latest call on the markets, economy and what he thinks are the best place to invest now.
S&P – Support at 1,045, Resistance at 1,200
Faber now thinks the stocks are oversold in the near term on extreme negative sentiment … visit site to read more >>>

Overcoming Bank Lobbyists Fight Against Financial Reform

Matt Taibbi on White House Response to Oil Spill

May 27, 2010 — Rolling Stone's Matt Taibbi on the financial reform bill passing in the House despite efforts by the banking lobbyists.
Rolling Stone's Matt Taibbi on the administrations slow response to the BP oil spill.

Marc Faber the sovereign crisis in Greece was a catalyst to knock markets down

Faber : US Bonds are better than Sovereign Bonds in Europe right now

Marc Faber : I think first of all the market became very over boat in mid-April and the correction was long overdue. The technical position of markets had deteriorated. So I think the sovereign crisis in Greece was kind of a catalyst to knock markets down. And it was a reminder that a number of western states, nations including the U.S. eventually will have liabilities that are excessive compared to their economies and so either taxes will have to go up or expenditures will have to go down, or a combination thereof, which then will not be particularly favorable for economic growth.

and when asked if Marc Faber would rather keep his money in the US view the global situation worldwide from Europe to Thailand etc , Marc Faber answered :
" Well, I think that near-term, obviously, what has happened is like in 2008, asset markets went down and the U.S. dollar went up. And essentially since November 25 of last year, the dollar has been strong vis- a-vis the Euro. In other words, the Euro has begun to weaken and as the dollar then strengthen, asset markets came down again because a strong dollar is an indication that global liquidity's tightening. And so we have a similar pattern like in 2008. But I wouldn't call the U.S. dollar and U.S. government bonds to be safe. I just think they are right now for the next three months may be the better option than say sovereign bonds in Europe. "

Marc Faber : I am bearish about everything - Bloomberg 5/25/10

Marc Faber on Bloomberg 5/25/10

May 25 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks with Bloomberg Television about the outlook for U.S. stocks. (This report is an excerpt of the full interview. Source: Bloomberg)

Marc Faber Discusses Outlook for U.S. Stock Market- Bloomberg May 25 2010

May 25 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks with Bloomberg Television about the outlook for U.S. stocks. (This report is an excerpt of the full interview. Source: Bloomberg)

Marc Faber on Bloomberg: S&P 500 Could Fall Another 15% 5/24/10

Marc Faber, publisher of the Gloom, Boom & Doom reports, talks with Bloomberg's Tom Keene and Ken Prewitt about the outlook for U.S. stocks.

Faber says global stocks are in a "correction period" and believes the Standard & Poor's 500 Index could decline another 10-15 percent. He also discusses the violence in Thailand.


Marc Faber who lives 700 kilometers from Bangkok : ...basically the country is very peaceful the population is not aggressive they're very tolerant they are a very permissive society , and I think for most Thais including myself to see burning buildings in BANGKOK was really a shock , that's nobody could have anticipated , if a year ago someone would told me that buildings will be burning in BANGKOK I never have believed it , so I think they're some reasons why it happened it is a complex story basically a populist leader that had the support of the ruler who is Mister Thaksin came to power and was then ousted by a military coup in 2006 and then a new government was installed which was more the bankers aristocracy and Thaksin then was condemned for corruption and had also to pay a fine and is in exile and he was again .., he managed again to rally the tour behind him to start the demonstrations , where it has to be said it is not proven that he paid the demonstrators but it is very likely that he paid the demonstrators who have been paid about twice what they would be earning in their salaries if they were working in factories and so on and so forth...and then the trouble went out of hand whether that was again directed by mister Thaksin or he lost control of the movement , that what happened and the violence erupted ...
basically calm has returned because you have to say one thing as in most people in Thailand do realize that Thaksin's aim and red shirts aim is actually not to boost the standards of living of the poor but just to use them as kind of human shield and an excuse and to buy their vote it is not about their group of leaders taking money and then redistributing money to the poor it is about their group of leaders getting hold of the money pot that's now is in the hands of the bank of elite and then carrying out the regime amidst the same or even worse corruption ...etc...

Marc Faber explains The Thailand Crisis - Bloomberg 24 May 2010

S&P 500 Index May Tumble as Much as 15%, Faber Says

Marc Faber who lives 700 kilometers from Bangkok : ...basically the country is very peaceful the population is not aggressive they're very tolerant they are a very permissive society , and I think for most Thais including myself to see burning buildings in BANGKOK was really a shock , that's nobody could have anticipated , if a year ago someone would told me that buildings will be burning in BANGKOK I never have believed it , so I think they're some reasons why it happened it is a complex story basically a populist leader that had the support of the ruler who is Mister Thaksin came to power and was then ousted by a military coup in 2006 and then a new government was installed which was more the bankers aristocracy and Thaksin then was condemned for corruption and had also to pay a fine and is in exile and he was again .., he managed again to rally the tour behind him to start the demonstrations , where it has to be said it is not proven that he paid the demonstrators but it is very likely that he paid the demonstrators who have been paid about twice what they would be earning in their salaries if they were working in factories and so on and so forth...and then the trouble went out of hand whether that was again directed by mister Thaksin or he lost control of the movement , that what happened and the violence erupted ...
basically calm has returned because you have to say one thing as in most people in Thailand do realize that Thaksin's aim and red shirts aim is actually not to boost the standards of living of the poor but just to use them as kind of human shield and an excuse and to buy their vote it is not about their group of leaders taking money and then redistributing money to the poor it is about their group of leaders getting hold of the money pot that's now is in the hands of the bank of elite and then carrying out the regime amidst the same or even worse corruption ...etc...
“The market became very overbought in mid-April,” Faber said in a Bloomberg Radio interview today with Tom Keene. “The S&P could still decline by another 10 percent, maybe 15 percent.”

Economic Armageddon? - End the Fed

Featuring interviews with Marc Faber, Jim Rogers and Peter Schiff Music: Clint Mansell - Lux Aeterna

Marc Faber The Capitalistic system will collapse

Marc Faber :The Great 2010 Gold Rush

Doctor Marc Faber the publisher of the Gloom, Boom & Doom report is convinced that eventually the United States of America and with it all western economies will go bankrupt and that ultimately they might go to war , but before they will go bust they will continue to print paper money as fast as they can , so Faber advices to seek refuge in Gold and to buy even small quantities each month , the fiat currencies are doomed to collapse sooner or later...
Marc Faber “I am convinced that the U.S. government will go bankrupt, but not tomorrow, and before they go bankrupt they’ll print money, and then you get very high inflation rate, then you get depression with high inflation and eventually they’ll go to war.”
“The obligations of Western governments are far too high. They won’t be able to pay.”
"I’m not saying that the dollar will go straight away down because other currencies like the euro are even worse at the present time. But eventually if you print money, the purchasing power will lose value."

Marc Faber The opening of the World Expo in Shanghai is not a particularly good omen for China

Marc Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen”, giving the example of the property bust and depression that followed the 1873 World Exhibition in Vienna.

“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong on Monday.

“The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”

Marc Faber : US Faces Same Economic Problems As Greece

US is as bad as Greece

"Many people haven't woken up to the severity of the US fiscal crisis, The only difference for the US from Greece is that it can print more money."
"It's not that Greece alone produced the market sell-off,It was a trigger but the market was probably overbought and we were ahead of economic fundamentals." said Marc Faber, author of the Gloom, Doom and Boom Report to CNBC

Marc Faber : China may Crash in next 9-12 months

SINGAPORE: Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy”, Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen”, he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.
“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong on Monday.“The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”Read more>>>

Marc Faber on China Bubble

Marc Faber, publisher of the Gloom, Boom & Doom Report, says China is overdoing it: "It does not make sense for China to build more empty buildings and add to capacities in industries where you already have overcapacity. I think the Chinese economy will decelerate very substantially in 2010 and could even crash."

Nassim Taleb Discusses Fragility in Banking System - Bloomberg

May 13 (Bloomberg) -- Nassim Taleb, a professor at New York University and author of "The Black Swan: The Impact of the Highly Improbable," talks with Bloomberg's Erik Schatzker about the selloff in the stock market on May 6, the drivers of the financial crisis and the "fragility" in the banking industry. (This is an excerpt of the full interview. Source: Bloomberg)