Bubbles can get Bigger before they Burst

 Lelde Smits: Finally Marc, you have previously said we are in a “gigantic financial asset bubble”. What signs will you be looking at to indicate that the bubble may be about to burst?

Marc Faber: Well that is the tricky part of bubbles. They can get bigger before they burst and it’s never crystal clear that they will burst. But, according to William White who was at the BIS [Swiss-based Bank for International Settlements] before, total credit in the world today as a percent of world GDP is now 30 per cent higher than it was in 2007 when the last crisis occurred because of excessive credit. So I think that the global economy is extremely vulnerable as credit growth may slow down.  - in Finance News Network Australia

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.