Marc Faber : China economy to fall down and will take down the US Stock Market

Marc Faber China's Economy to slow down considerably and will drag the US Market down 20%

Dr. Marc Faber editor and publisher of The Gloom, Boom & Doom Report was on CNBC by phone from Thailand this 17 Feb 2010 , he answered questions regarding the China's credit growth and economic slowdown and its implications on the US market : "The issue for 2010 is to what extent China will slow down " says Marc Faber "It certainly will slow down because the loan growth we had last year which was over a trillion dollar and generally actually accelerated to 200 billion dollars , in other words bank loans generally were rising at an annual rate of something like two and half trillion dollar on a GDP that is slightly over 4 trillion dollars , it is not sustainable in the long run and we have a lot of excess capacities in China in different industries and in particular in the real market , so credit growth will slow down and that obviousely will slow down the economy" Marc Faber explained
"I would not buy Chinese stocks here," Faber tells the Fast Money desk

"I would be careful of any asset that benefited greatly from the China boom in 2009 because (their earnings) are not sustainable" Faber added
Marc Faber expects the Dow and S&P “fall 20% from the January highs