Marc Faber : we have all the symptoms of a bubble in China

Marc Faber : I think we have all the symptoms of a bubble in China , but if the bubble is about to burst and there is a meaningful slowdown in the economy , the Chinese they invented the paper they can also print money and they will be very good at that , so they can take a pain through a depreciation in the currency rather than a collapse in the asset prices domestically "

Marc Faber : a collapse in the Chinese economy will have a very negative impact on the demand for industrial commodities

Marc Faber : "... I would say, let’s take a very bearish scenario, assuming there is a collapse in the Chinese economy, which is not necessarily my prediction, but some people say there is a horrendous bubble. I agree, if we define a bubble as artificially low interest rates, and excessive credit growth, then we have a colossal bubble in China. But it may go on for another 2-3 years. But let’s say it breaks one day. Then it will have a very negative impact on the demand for industrial commodities. And we may get, at some stage, in some sectors of the economy, the risk of deflation. In other words, the demand for industrial commodities could, for a year or two, decline, and so, obviously, the price of copper, and of nickel, and also, to some extent, oil– although this would depend very much on political developments – would go down.In that environment, there will be more money-printing. If the S&P drops 20%, all the people that are now criticizing Mr. Bernanke for QE-II will go back to their old pattern,as they have done between 1980 and 2007, to encourage the Fed to print money, because they all benefited from rising asset prices. But as soon as the S&P drops 20%, the American policy-makers will all again be for further monetary policy measures and further fiscal measures.At that time, obviously, you could end up with a global economy that is very weak, but where prices go up for certain commodities, such as gold and silver.They don’t go down because of an oversupply situation, but they move because they are a safe currency.They become the proper unit of account. In all hyper-inflation economies, eventually people give up their own currencies as a unit of account.If you had gone to Zimbabwe during their hyper-inflation, or if you had gone to Germany during their hyper-inflation, or Mexico during their hyper-inflation, nobody in those countries calculated prices anymore in their domestic currency, it was all then becoming a dollar standard, or gold standard. That is why I think that people should have some of their money in gold and silver " - in a recent interview with MacAlavany

Marc Faber : China has a gigantic bubble and it will burst

Marc Faber  : ....I think that if we define a bubble by artificially low interest rates and excessive credit expansion then China has a gigantic bubble , but in the contest of economic development the bubble will burst for sure , I do not know tomorrow or in three weeks or in three months and when it burst they will also be also world champions in money printing they will be exactly what Mr Bernanke has done and so I would rather bet that eventually the RMB could weaken against the US Dollar that's why I am not so bearish about the US Dollar right now , I think among the sick currencies it may be OK for the time being ...when the Chinese bubble burst they'll have a recession but as you know the US economic history 1800 to today how many recessions you had ? the civil war world war one depression world war two and the country still kept on drawing and the same could happen in China ...but I mean I go along with Jim (Chanos?) and I think it's a gigantic bubble and it will burst ...and this will have a huge impact on the rest of Asia on Australia Canada Brazil , the resource producers ...in Bloomberg TV

Marc Faber : we have clearly a bubble in China

Marc Faber : Well, I think in the case of China, we have clearly a bubble, if we define a bubble as an economy where credit growth is very strong and where interest rates are artificially low. But, will it burst tomorrow, in three months or in three years, who knows?

Marc Faber : China may Crash in next 9-12 months

SINGAPORE: Investor Marc Faber said China’s economy will slow and possibly “crash” within a year as declines in stock and commodity prices signal the nation’s property bubble is set to burst.

The Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting “heavy”, Faber said. The opening of the World Expo in Shanghai last week is “not a particularly good omen”, he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.
“The market is telling you that something is not quite right,” Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong on Monday.“The Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.”Read more>>>

Marc Faber on China Bubble

Marc Faber, publisher of the Gloom, Boom & Doom Report, says China is overdoing it: "It does not make sense for China to build more empty buildings and add to capacities in industries where you already have overcapacity. I think the Chinese economy will decelerate very substantially in 2010 and could even crash."

Marc Faber : a Bubble is Forming in China

Marc Faber on Bloomberg 21st April 2010

Marc Faber :"I think that there are some symptoms of a bubble building in China , we have this rapid increase in foreign exchange reserves , we have very strong credit growth we have rapidly rising property prices and a bubble is obviously building , now it is always difficult to tell at what particular time or which day the bubble will burst , I turned bearish about Japan in 1988 two years before the NIKKEI collapsed and I turned negative about US Tech stocks in 19p8 and it took another two years untill the bubble burst , I am not saying that the Chinese property market is bursting tomorrow , however I just like to observe the following : first of all the chinese stock market is still far below its peak in 2007 secondly the stock market in China is lower than in august 2009 and is lower as is the Hang Sen index than in November 2009 , in other words we have essentially a boom in properties but it is not reflected in the stock market, and I think may be the stock market is giving us a signal that not all is right in China ...and all I am maintaining is if the bubble burst in china you do not want to be say in australian stocks , in the australian dollar in commodities , in industrial commodities like copper and Nickel and Alluminum because the demand for commodities in scenario of chinese bubble bursting is going to go down very substantially , so it is a risk now , it may not happen right away may only happen next year , but this is ...an investor should keep this in mind that when the bubble burst in China and for sure if it does not burst now it will burst say in six months , if it does not burst in six months it may burst in twelve months or in eighteen months , the longer it does not happen the worse it will be ..."
Marc Faber, publisher of the Gloom, Boom & Doom report, talks about growth in lending and increases in property prices in China. Faber also discusses his caution about buying industrial commodities and Australian stocks. He speaks with Bloomberg's Liza Lin in Singapore.
Marc Faber : Obama targets Goldman Sachs to mask his own failures
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.

The Bubble in China is not a credit bubble - Marc Faber

Marc Faber in Vienna October 2009 German with subtitles

The bubble in china is not a credit bubble , the credit has not expanded too much , in the last time more , but as a percent of the Gross national Product not especially and the houses prices In comparison with the gross national product and in comparison to the income personal income hey have rather fallen ...but where the bubbles exist in China , the investment bubble are over capacities one has built way too much capacities and therefore is the stimulus program in China actually of no use , because if you have overcapacities in the world you can well print money and suplly money then you build even more capacities if the money goes into the private sector , If a businessman has overcapacities then he would not of course build a new fabric , what he will then do with the excess liquidity is to speculate in the real estate and the stock market...etc...

China Bubble or not Bubble ? what does Marc Faber Think ?

Marc Faber agrees with Chanos that there is a China Bubble ready to burst but does not mention the timing of its implosion

Marc Faber tries to be balanced between his two friends Jim Rogers and Jim Chanos who have been arguing about the so called 'China Bubble' , Marc Faber seems to be inclined to believe that there is in fact a China bubble but he does not put a timeline to its imploding , what Marc Faber is sure about is that the day the China bubble burst it will be very bad news for commodities and for the rest of the emerging markets , because china is now the biggest importer from Brazil and Australia for example
"Yes I'm worried about it. I'm sure that Jim Chanos will be right about it someday," Marc Faber The author of the Gloom Boom & Doom Report newsletter said . "It's very difficult to pinpoint a day when China will implode. I don't think it will happen right away," he explained .later Marc Faber speaks about the Dubai Bubble pinpointing out that Dubai has also made great advancements as it has great infrastructures and one of the most efficient airliners in the world and that is Emirates Airlines , but Faber admits that there were excesses....


Dr. Marc Faber also known as Dr Doom is an investment advisor, investment analyst and fund manager author and publisher of the Gloom Boom & Doom Report . 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.
he became well known for advising his clients to get out of the stock market one week before the October 1987 crash. Dr Doom motto is "Follow the course opposite to custom and you will almost be right"