Marc Faber : a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone

Marc Faber : "If you put one or 100 sick banks in a union, it does not change the fact that they're sick. In my view the markets are rallying because they were grossly oversold. And when markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher. And so I think that combined with seasonal strength in July, the rally has carried on somewhat. But it is another cosmetic fix, a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone. And what it does, basically, it forces Germans savers to bailout and to continue to finance people in Spain and Portugal and Greece and so forth that are living beyond their means." - in Bloomberg
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