We have to distinguish between the stock market and the real economy Marc Faber

Dr. Marc Faber shares thoughts on global financial recovery on ABC Lateline Business Interview 26 Aug 2009

MARC FABER: We have to distinguish between the stock market and the real economy. The real economy began recession in late 2007 and then between September 2008 and March 2009 we fell off the cliff. And then we were at the very low level of economic activity. And then the huge stimulus packages kicked in and the money printing kick kicked. In other words zero interest rates and quantitative easing by the Federal Reserve and also other central banks.
That then stabilized the global economy and when you have car sales dropping 50 per cent and more, then you of course will have a rebound. But the question is how sustainable the rebound will be, or is this rebound at the present time borrowed from the future? My sense is that - and here I am talking about the economy - that the economy in the near term can recover and maybe the recovery will be somewhat lengthier than expected. The crack of boom because the first stimulus package in the US, probably will be followed by a second one, and money printing will lead to even more money printing next year, so it can last 12 to 18 months. And then we will get another set of problems arising from ... each government action has unintended consequences.
Dr Marc Faber aka Dr Doom is one of the world's best known economists, author publisher and editor of the Gloom Boom and Doom report, and author of Tomorrow's Gold