Tuesday, August 16, 2011
Monday, August 15, 2011
Marc Faber : well basically we have a lot of volatility as you know the last 12 months the S&amp;P rose from 1010 on July 1st of 2010 to the peak of May 2nd of this year 1370 and then we dropped four days ago to 1101 and now we are at 1178 so we have a lot of volatility as in the market may rebound somewhat more because we are very oversold and some technical indicators have turned positive including also insider buying , but in general I think it will be extremely difficult for stocks to make a new high and after this rebound I think we'll drift lower it is not to say that we will collapse because if the S&amp;P dropped to around a thousand or so the FED will certainly pump again money into the system the concept of valuation is very difficult to make when you have zero interest rates , I can make a case that actually the price of Gold is still undervalued compared to say to mi 1990s when it was traded at 400 dollars , so it is very difficult to say what is valued in this environment is a Picasso a good value or is it over valued ? I don't know but stocks measured by prize earning ratios and considering that probably the economy will be weakening and that corporate profit may disappoint may not be quite as cheap as all the strategists claim I believe all the central banks in the whole world will print money and that eventually we will have symptoms of inflation they may not necessarily all be consumer based prices they can be manifesting themselves with insurance premiums going up with transportation going up energy price going up food prices going up educational costs going up these are inflation measures also and the weakening of the US Dollar that happened , now near term the US Dollar can rebound somewhat , possible but in the long run it is simply a doomed currency that's where the doom comes in
Sunday, August 14, 2011
Friday, August 12, 2011
Thursday, August 11, 2011
Marc Faber : the fundamentals of emerging economies are far better than the fundamentals of European countries and the fundamentals of the United States
Wednesday, August 10, 2011
Marc Faber : I think they did the right thing that they did not announce QE3 , so they can watch the reaction of assets whether they go lower , I think the market is more likely to move still lower , we are very over sold we can have a rebound like we have today may be we will have a rebound next week or so , but in general I thing we will test the July lows of last year , the S&P at 1010 after that probably we will get kind of QE3 announcement ....
I think the FED is underestimating the severity of the coming economic downturn , and also they've shot out essentially they've spent their bullets , it is very difficult to follow with QE2 right here because you have gold prices going ballistic and you have the dollar being very weak and so there are unintended consequences with implementing QE3 right here ,
....actually the best thing they could (The FED ) do for the market would be to collectively resign , this is my view ...everybody in the world have become a Keynesian everybody thinks the government should do this the government should do that the FED should do this the Treasury should do that , I think sometimes the FED should do nothing and I welcome the decision today that they are not doing anything worse of what they have already done ...
I want to ask you , what have QE1 and QE2 done to the labor market ? Nothing at all , it has done nothing for the housing market , it lifted stocks and it created wider wealth inequality in the sense that people that own assets have done very well and the people that are the lower income recipient groups they are hurt by rising energy prices and rising foo prices ....
Tuesday, August 9, 2011
Monday, August 8, 2011
Marc Faber : ...S&amp;amp;P basically downgraded a junk bond because it is no longer a triple A , a government bond has a triple A rating when it is willing to pay the interests in a stable currency we are not dealing in this particular case the US Dollar with a stable currency The rating agencies are looking backward and not forward , The US fiscal position is a disaster if you include non funded liabilities and some kind of default will occur , now there are two ways a government can default , it can default by not paying the interests and restructuring its debt as happened in Argentina and in other countries repeatedly , or it can repay the interests and the debt in a depreciated currency , all currencies all paper money are losing value in terms of their purchasing power and of course the Us Dolar is losing more of its purchasing power than other currencies " "
Sunday, August 7, 2011
Saturday, August 6, 2011
Marc Faber : treasuries are perceived still as a safe heaven because everybody knows the US has an endless ability to print money
Marc Faber : soon we will see if Bernanke is a really a true money printer or just an amateur money printer
- in Bloomberg ...Click Here to watch the Full Interview >>>>....
Friday, August 5, 2011
- in Bloomberg ...Click Here to watch the Full Interview >>>>....
Marc Faber : well I do not think that so far it's been a major sell-off , I think we doubled in markets from March 2009 until the high in May of this year and now with the S&P we are down 10 percent the whole world is panicking ..I am telling you the world is mad the investors they do not understand that markets are volatile and that they have to be prepared to see stocks dropping 30 percent annually and rally 20 percent and then drops 30 percent that should be the pattern and whoever can't live with that he shouldn't be buying anything at all
" there is a case to be ultra-bearish about everything but then you have to think , if I am really very negative about everything what do I invest in ? government bonds in the US the ten years yields in 2.4 percent in a weak currency ? or do I invest in cash with negative real interest rates or do I invest in equities real estates precious metals commodities collectibles ? well I have to say equities are going to go lower where As of today, the markets are extremely oversold and they can take in a rally , but the technical damage that has occurred between November of last year and and just recently is enormous and I do not think we will see new highs for the year I think we 've seen the highs for the year between February and May of this year "
Thursday, August 4, 2011
Marc Faber : I am not a great sympathizer of the tea party movement because I think they are too intolerant
Wednesday, August 3, 2011
Tuesday, August 2, 2011
Marc Faber : "I think this is a huge risk and it is a much larger risk for the global economy than it is for the US , because the US is no more a large commodity buyer China is , and If Chinese growth really slows down or if they have a crash as some analyst say they may have , then it obviously will impact the economies of countries like Australia the middle east Brazil Canada and so forth and of course also the property market of Vancouver Hong Kong Singapore Sydney and then it will back fire in the sense that these economies that produce commodities are falling commodity prices they'll buy less goods from China , so it could trigger a vicious circle on the downside and I would say there is a fairly good chance that this could happen,This would really be something that the world central bankers wouldn't be able to help with printing money , they may be able to print money but it wouldn't really help the real economy it may help the financial economy to support equity prices "
"I do not think it will be a trade war , I believe and that's why I am ultra bearish about everything , that being ultra bearish about everything I think you better off in equities than in bond or in cash probably the best will be in precious metals , but basically I see that ten years ago a huge shift in the balance of the economic power begun from the western world notable from the US and western Europe to Asia and emerging economies , we have today in the goods market I am not talking about services because services are very difficult to measure but in the goods market the emerging economies are much much larger than western Europe and the US even combined , so this shift in the balance of economic power to emerging economies is accompanied by a shift in political and military power and that the west will not just set there and do nothing , I mean the Libyan expedition is the first shot , I think the western world want to control China by controlling the oil supplies from the middle east and then it will come to war and in war times the one thing you do not want to is in the US government debt bonds equities will do OK and precious metals and some commodities will do very well but I would prepare for the worst but when you think it is true in the worse scenario you do not want to be in Cash US Dollars and in the US Government bonds
Marc Faber, managing director, editor and publisher at The Gloom Boom & Doom Report told CNBC. "This would be really something the world's central bankers wouldn't be able to help with printing money,"
"The Treasury market is telling you that the economy is in recession," "So if the bond market is telling you that the economies of the Western world are weakening, but at the same time the stock market is still relatively high, I think the stock market is vulnerable." Marc Faber told CNBC in an interview
"The politicians are all useless individuals. Nobody is reducing the problems in the US or Europe, just putting on a band aid and postponing the problems endlessly," he added
"Some analysts think that there's a chance economic data will surprise on the upside but I think, if anything, it will be on the downside," Faber added.
Monday, August 1, 2011
Bill Fleckenstein : I think that there will be a deal , and even if there won't be a deal there will not be a default on August the 2nd because there are other things that could be done , This is a political theater we have seen it many many times , it is a political event not to say that we do not have serious problems and not to say that leverage to this can be used to help force the members of congress who are bought and paid for by the lobbyists to do something right , but mostly this is about political theater not about trying to get anything done , sad to say
Sunday, July 31, 2011
"Something will have to happen....but, I don't think they will default on the debt," he added.
"It is mind boggling that somebody will buy 10-year U.S. Treasurys at a yield of less than 3%, denominated in US Dollars," Marc Faber told CNBC recently
Saturday, July 30, 2011
Marc Faber : America has many, many good sides It is the government that is horrible and, in particular, the present one.
Friday, July 29, 2011
Thursday, July 28, 2011
And by the way, I think the inflation in the US is already much higher than what is being published by the media. And we know now about the media since Mr. Murdock is the largest media machinate. And since he, for sure, because I know some people who used to be in leading positions at News Corp in Asia -- he calls them every day. He checks everything that they do. He knew about the hacking in Britain for sure. And he sanctioned it.But this big business. Big business is dirty. But why is it dirty? Because it’s been made dirty by the government.
. - in Financial Sense News Hour Click Here to listen to the whole interview >>>>>
Wednesday, July 27, 2011
Tuesday, July 26, 2011
Monday, July 25, 2011
Secondly, at the time I grew up, we still had fixed exchange rates. We had Bretton Woods -- in other words, a quasi gold standard, which no longer exists today. And the ability to print money today and to run huge trade and current account deficits is much higher today than it was at that time. In ’71 under President Nixon on August 26th, the US went off the gold standard and that led then to the inflation of the seventies and the gold price rising from thirty dollars to eight hundred fifty dollars. - in Financial Sense News Hour Click Here to listen to the whole interview >>>>>
Sunday, July 24, 2011
Marc Faber : at least in China they use credit to make capital investments not to to buy McDonalds hamburgers
Saturday, July 23, 2011
Friday, July 22, 2011
- in The Financial Sense NewsHour Interview
Thursday, July 21, 2011
Marc Faber : I feel sorry for Mr Bernanke , academically he knows everything but he has no clue about the real world
Wednesday, July 20, 2011
Tuesday, July 19, 2011
Marc Faber : ...I think the deflationists they also have families they go shopping their families go shopping they pay educational cost they pay healthcare cost insurance cost and they see the fees on local government services increasing then I find it hard to believe that they will endorse the contest of deflation but obviously they may think that the economy may collapse and that as a result of that we may have deflation and that therefore you should buy long term US government bonds and my view is particularly in the deflationist scenario where you would have like Prechter said the Dow Jones below a thousand in that scenario you would not want to be in US government bonds and Cash for the simple reason that in that scenario the fiscal deficit in other words spending would exceed tax revenues even more than if you are actually optimistic about the economy , just consider if the Dow Jones went below a thousand what kind of an economic environment would we be in , we would be in a total credit collapse we would be in a total economic collapse and we would have a complete corporate profit collapse and in a corporate profit collapse and in an economic depression what would you thing happens to tax revenues , they would collapse as well and so the revenues of the treasury would decline very meaningfully and the fiscal deficit which is now running say optimistically said at one and a half trillion if you counted unfunded liabilities that are growing every year proof that the fiscal deficit is more likely two to two and half trillion dollars , but let's say it is one and a half trillion , if that happens the Dow Jones below a thousand corporate profit collapsing and revenues collapsing the fiscal deficit for sure will be two to three trillion dollars and in that environment the quality of credit of the US as was suggested by Moody's yesterday would decline and US government bonds which I think are already today junk bonds would go and yield much more than less than three percent that they are yielding at present time , so particularly in a deflationist scenario you do not want to be in a government bonds "....
Monday, July 18, 2011
David Rosenberg , we are just one small shock wave away of having the economy going back into the recession
"the stock market has actually done much better than i thought it would do because ultimately it will get priced off of corporate earnings and corporate earnings have done phenomenally well. the local economy has done far worse because the other component of the economy called labor income has done poorly. i don't think the stock market can stay divorced from the economy indefinitely." David Rosenberg says "...the small caps are part of the cycle. but the point on the overall recovery depends what your assumption is. my assumption is this was a balance sheet recession that we emerged from. so this was not a classic post-world war ii manufacturing inventory cycle that looks almost like a sign wave. if you look at centuries of data you'll find balance sheets of recession, asset deflation, rising savings rates. it's ultimately very deflationary. what you find is the recovery period tends to be fraught with fragility. it's not normal to have two soft patches this close together barely two years after the recession end. it happens in the context of a balance sheet recession. not in the manufacturing inventory cycle. everything is telling you just how soft the underbelly of the economy is. we're just one small shock wave away of having the economy going back into the recession." he added
Timothy Geithner, Treasury Secretary, Discussing the plans for whether the debt ceiling is not raised " I have spent all day both days in the white house, and there's a lot happening as we try to work with leaders on both sides to bring people together to do something useful for the economy, do something about long term deficits. very important to have the leadership of the republican party definitively take default off the table." says Timothy Geithner " senator McConnell, Mr. Boehner, cantor have each said default is not an option and you saw senator McConnell propose last week a mechanism for making clear that the u.s. will not default. again, we need to make sure we'll do something about a long term deficit. we're still working very hard and the president said last week wants us to work towards the biggest, the largest budget agreement we can. " he added
Sunday, July 17, 2011
John Williams of Shadow stats talks about the road to hyperinflation 2014 and the fake government numbers .Economist of Shadow Government Statistics and shadowstats.com founder John Williams claims government employment and inflation numbers are inaccurate, and economy is shakier than indicated.There is no way we could possibly pay our debt either we raise the taxes or we do not either we cut social security or we do not , we are headed towards a Wiemar Republic type of hyperinflation and a banana republic kind of government ....the whole system is collapsing
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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