Marc Faber : AIG should have gone bust and then the whole derivatives market would have shrunk

Marc Faber to own Gold is the right thing to do - CNBC Interview Mar 18 2010

"In General now everybody thinks we need more regulations , we need less regulations , but what we need is regulations that make sense says Marc Faber and my point is if we had interests rates that are high you would not have the amount of speculations that we had in the past ten , fifteen years , so again I am going back to easy monetary policy of the FED in the United States that has essentially encouraged speculation on an incredible scale worldwide and they have also introduced moral hazards by bailing out already 9098 LTCM and again by bailing out AIG , AIG should have gone bust and then the whole derivative market would have shrunk , but each time you bailout someone and that's a form of regulating the market , you create unintended consequences , it is like why do we have such horrible housing market because Fannie Mae and Freddie Mac encouraged speculation in real estate indirectly ...Says Marc Faber ...in the corporate world we have free market we have capitalistic system and some companies survive and other companies go bankrupt and the same should be with governments , if a government cannot pay then let them go bankrupt , why would one bail them out and some investors will suffer and some investors will bet on the bankruptcy of the governments who will make it , that's fine ...Marc Faber continues then speaking abut where he sees the Euro the YEN and US Dollar going from here , he also speaks about gold and gold standard
"I think we already have now a gold standard … created by the market place," Marc Faber told "Squawk Box Europe."

"We have the (ETFs) that have proliferated and we have more and more physical buying of gold," he said.