Friday, September 16, 2011

Market volatility is a Consequence of Zero Interest Rate

Marc Faber : ( Stock Market volatility ) well I do not think it is a sign of a healthy market but it's let's say a Consequence of Zero Interest Rate , I have argued for years that the Federal Reserve with its artificial low interest rate instead of creating monetary and economic stability has created more instability by creating the NASDQ bubble the housing bubble the commodities bubble and now creating a giant government debt bubble and so we are going to have a lot of volatility every year for the next few years where markets will go up and down for at least thirty percent per anum and I think in real terms , inflation adjusted terms it will not make much headways - in Yahoo Finance

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.