Marc Faber : The Consumption is up because people do not pay the mortgages

Marc Faber on CNBC Squawk Box 4/21/10

Marc Faber : I told my readers and the media enterprise in the US in March 06 2009 :buy Stocks because the worse it becomes economically and geopolitically the more markets will go up and the more money they will print , so I am not feeling guilty of having said do not touch anything on the contrary ,...because I am so bearish , what you should not own is cash , cash is going to be a disaster...of course if the disaster strikes it is very difficult to survive it if everybody else is killed financially because the government will of course take your gold away , but I am just saying whatever you do today it may not last ...the market if you print out money like Zimbabwe can go up very substantially but the purchasing power of the money goes down and the standard of living goes down and eventually you have either civil war , and by the way in the US the mood has turned very very negative amongst certain groups of the society ....The FED is raising the interest rates in America ...unlike in other countries ...you know why consumption is up , because people do not pay their mortgages so they have surplus cash , if you do not pay your mortgage , and if you are going to go bankrupt anyway you may as well spend as much as you can ....but still about sixteen percent of the people in America do not have the jobs they would like to have or are unemployed ...




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, MARC FABER LIMITED which acts as an investment advisor and fund manager.
Dr Faber publishes a widely read monthly investment newsletter "The Gloom Boom & Doom Report" report which highlights unusual investment opportunities, and is the author of several books including “ TOMORROW'S GOLD – Asia's Age of Discovery” which was first published in 2002 and highlights future investment opportunities around the world. “ TOMORROW'S GOLD ” was for several weeks on Amazon's best seller list and is being translated into Japanese, Chinese, Korean, Thai and German. Dr. Faber is also a regular contributor to several leading financial publications around the world.
Dr. Marc Faber also known as Dr Doom is an investment adviser, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report ,and the author of "Tomorrows Gold" . Dr Faber is known for his contrarian investment approach. Dr Marc Faber is associated with a variety of funds and is a member of the Board of Directors of numerous companies.
In 1987 he warned his clients to cash out before Black Monday on Wall Street. He made them handsome profits by forecasting the burst in the Japanese Bubble in 1990. He correctly predicted the collapse in US gaming stocks in 1993; and he foresaw the Asia-Pacific financial crisis of 1997/98 and the resulting global volatility. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"
Mr. Faber is also the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery, and is a director of Ivanhoe Mines Ltd. , a mining firm focused on the Asia Pacific region. He is also an adviser to a number of private investment funds.