Greece is bust, it is as simple as that

Marc Faber : "Greece is a bust, it is as simple as that. If it was a company, it would go into bankruptcy, into liquidation, into restructuring and the bond holders or the creditors would have to take huge haircuts, probably in the order of 70-80%. But here comes the government, of course the government and the IMF and the ECB, they know everything better than anybody else. So they bail it out. This is the problem I just explained. The financial system went bust. Now the governments are extending the credit and as a result, their credit worthiness is declining and eventually a lot of countries will go bust because they help the weak companies or the weak country survive. " - in ET Now

Marc Faber the sovereign crisis in Greece was a catalyst to knock markets down

Faber : US Bonds are better than Sovereign Bonds in Europe right now

Marc Faber : I think first of all the market became very over boat in mid-April and the correction was long overdue. The technical position of markets had deteriorated. So I think the sovereign crisis in Greece was kind of a catalyst to knock markets down. And it was a reminder that a number of western states, nations including the U.S. eventually will have liabilities that are excessive compared to their economies and so either taxes will have to go up or expenditures will have to go down, or a combination thereof, which then will not be particularly favorable for economic growth.

and when asked if Marc Faber would rather keep his money in the US view the global situation worldwide from Europe to Thailand etc , Marc Faber answered :
" Well, I think that near-term, obviously, what has happened is like in 2008, asset markets went down and the U.S. dollar went up. And essentially since November 25 of last year, the dollar has been strong vis- a-vis the Euro. In other words, the Euro has begun to weaken and as the dollar then strengthen, asset markets came down again because a strong dollar is an indication that global liquidity's tightening. And so we have a similar pattern like in 2008. But I wouldn't call the U.S. dollar and U.S. government bonds to be safe. I just think they are right now for the next three months may be the better option than say sovereign bonds in Europe. "

Roubini and Faber on the Greece Sovereign Debt Crisis

Marc Faber Greece is basically bankrupt , the EU has to bail it out

Marc Faber : well basically we have a financial crisis in Greece no doubt , the country is basically bankrupt and the EU will most likely have to bail it out and obviously that's favorable for Greece if they get bailed out temporarily but negative for the EU and so the Euro Dollar , The Euro was weak over the last couple of weeks , so that is basically what has happened , it is not that Greece produce the market sell-offs it was a trigger , a catalyst for the sell-off they were a lot of factors training to a correction to start with the market was over bought we were ahead over essentially economic fundamentals in emerging economies and around the world we're up more than a hundred percent from the March 2009 lows and in the US 80% , and very clearly the economic expansion particularly in the western world western Europe and the US , considering the huge fiscal stimulus and zero interest rate ......"
"I think most western European governments with few exceptions and the US in the long run cannot pay their unfunded liabilities and therefore we will have more and more sovereign defaults in future but of course we live in the twenty first century and when we live in this century the governments they print money before they default and that will be the case in the EU and it will be the case in the US , so temporarily you can postpone the hour of truth" later on the other Dr Doom Nouriel Roubini asks Marc Faber some interesting questions aboutGreece and China bubble amongst other things
Yesterday's historic sell-off sending shivers through an already fearful market, with Laurence Meyer, Macroeconomic Advisers and Marc Faber, The Gloom, Boom & Doom Report.