Liquidity Tightening is bad for asset prices but good for the U.S. Dollar

Marc Faber : yes. well, I think the volatility arises because we had the NASDAQ bubble and then we had the housing bubble and the stock market bubble and then a commodities bubble. and usually when the bubble bursts like after 29 or like after the late '60s you have a period of very high volatility for about 10 to 15 years before the markets settle down and then reignite the uptrend. And as far as the dollar is concerned , the reason I am actually quite positive is that global liquidity, despite of the fact that the ECB and the European governments will flood the market with liquidity to bail themselves out that, global liquidity is tightening. and whenever global liquidity is tightening, it's bad for asset prices but it's good for the U.S.. dollar as was the case in 2008. - in CNBC 11th Oct 2011