Marc Faber on the Economy, Gold, WWIII 67 comments
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Another good interview with Dr. Marc Faber, this one over at Bloomberg where he's been a regular for many years (recent appearances at the likes of CNBC are somewhat unusual as he tends to go against conventional wisdom, something that abounds at CNBC).
That's the problem of society. If people can not accept the downside to capitalism, then they should become socialists and then they have a planned economy. They should go to eastern Europe twenty years ago and to Russia and China for the last 70 years. Why is he losing his home? Because of government intervention. The government - the Federal Reserve - kept interest rates artificially low and created the biggest housing bubble, not just in the U.S. but worldwide. That is what I'd explain to the worker in Detroit.
There's lots of good stuff in this one - the outlook for the global economy, oil, gold, base metals, natural resource stocks, World War III having already started...
On the subject of alternatives to the government solutions for the current problems, he was asked how he expected the populace to stand for the government doing nothing?
How do you tell that to somebody in Detroit who's losing his home today?
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I've been criticized by friends for living in a cheap apartment, not buying new furniture, not buying a new car, not taking that second credit card, not buying new clothes. But now, my rent is affordable, my heat is free, my lights are cheap, my car is paid off, my credit card carries a balance that will be paid off next week, and my furniture and clothes are still just as good as they were. I won't have a house to leave to my kids (and they won't have to try to sell it), but I will have money. The funny thing about money is that kids young and old like it. And they like it more than Aunt Gerda's antimacassar and Uncle Herb's rickety rocking chair.
As a nation, as independent and FREE thinkers, we need to begin to take responsibility for our OWN actions, we need to stop whining and blaming everything else for what we have brought on ourselves. Housing bubble or not, global warming or not, it isn't important if WE don't take responsibility for ourselves. I'm tired of listening to everyone place blame.
Very great. I am from Europe and always being told that I am a communist or so.
But take the article above, YOU USA complain more about government and less about your own actions as the people in the former communist states do.
Thanks for the post. Marc Faber is one in the small minority that saw this coming well in advance. His early warnings made me more cautious. Unfortunately, I also took in too much of CNBC and other serial propagandists and played it half way. That half got beat up. So those like Marc who go public on what was then a small minority view and boldly proclaim their analysis now have earned the respect and attention they deserve.
CNBC on the other hand has been almost eliminated from my financial news input. Examples are endless, but here's just a few:
Dot-com peak: The cheerleading was rampant and analysis was laughable (remember "price/page hits" for those companies who couldn't give a PE or PS cause they had no E, and often no S.) Timing was exactly wrong. That was the time to sell not buy.
Late summer '02: Maria Barkarama was interviewing Bill Fleckenstein on closing bell after another awful day. After almost all the damage was done, then he finally gets some air time. Timing was exactly wrong. That was the time to buy not sell.
2007: Cheerleading is again in vogue. And where bears get air time, they are often criticized by permabulls like Larry Kudlow and the Kool-Aid drinkers he seems so fond of. Ditto on timing comments.
2008: After a nearly 50% selloff, bears are shown a little more respect.
Now Larry Kudlow (who has been shockingly wrong the past year) is calling for a "panic rally".
Like I said, I've about eliminated CNBC from my news input. Remember Bagdad Bob (the former Iraqi Information Minister)? He was interviewed live on air proclaiming certain victory as enemy tanks were rolling into Bagdad just a short distance from where he was standing. Now think of Larry Kudlow's predictions over the past year, and most of CNBC for that matter. CNBC has become the Bagdad Bob of financial journalism.
By October 2007, he said that Americans were experiencing recession only that they did not know it as yet.
It took one year later by the NBER to declare such truth, thus proving Marc Faber right.
To guess what should happen in stocks at the stock exchanges, what should happen in commodities at the commodity exchanges, a man must look outside such systems.
This is what Marc Faber does. He travels the earth relentlessly visiting the marketplaces for goods, talking to manufacturers.
Marc Faber looks at credit money growth and shipping levels to gain a better picture of what is happening.
Underspending your income and saving for a rainny day is where everyone should be.
On Jan 07 08:27 AM whisperonthewind wrote:
> We can blame others (governments, banks, big oil, etc.) until the
> skies turn polka-dotted, but at some point we have to accept responsibility
> for the things we each do for ourselves and TO ourselves. WE the
> users went for those adjustable rate mortgages. WE believed the hype.
> WE didn't pay the mortgage. WE lost those houses/cars/boats. The
> government here is such that it makes things available, but no one
> forced anyone to sign the papers. WE did that. WE refused to read
> the papers. WE refused to do the math. WE refused to ask the loan-makers
> to show us the numbers on paper. WE refused to listen when the interest
> rates were going up. And WE liked it, because our house values were
> going up at the same time. WE wanted higher values for our houses
> because we knew it would make us rich when we sold to some poor sucker.
> The blame lies with each of us that made those stupid mistakes.<br/>
>
> I've been criticized by friends for living in a cheap apartment,
> not buying new furniture, not buying a new car, not taking that second
> credit card, not buying new clothes. But now, my rent is affordable,
> my heat is free, my lights are cheap, my car is paid off, my credit
> card carries a balance that will be paid off next week, and my furniture
> and clothes are still just as good as they were. I won't have a house
> to leave to my kids (and they won't have to try to sell it), but
> I will have money. The funny thing about money is that kids young
> and old like it. And they like it more than Aunt Gerda's antimacassar
> and Uncle Herb's rickety rocking chair.
>
> As a nation, as independent and FREE thinkers, we need to begin to
> take responsibility for our OWN actions, we need to stop whining
> and blaming everything else for what we have brought on ourselves.
> Housing bubble or not, global warming or not, it isn't important
> if WE don't take responsibility for ourselves. I'm tired of listening
> to everyone place blame.
On Jan 07 08:54 AM Vienna wrote:
> whisperonthewind
>
> Very great. I am from Europe and always being told that I am a communist
> or so.
>
> But take the article above, YOU USA complain more about government
> and less about your own actions as the people in the former communist
> states do.
I agree. CNBC is a contrarian, backwards-looking indicator. The only people they show are the ones whose investment styles have been in style and are about to go out of style.
Farber's world view allows but a single cause for our current mess. The fact that many shady mortgage lenders chose to make risky loans to underdocumented and poor risk borrowers or that many borrowers chose to leverage their homes to the maximum extent possible based on the hype that home prices would grow forever at a 20% rate is not possible in his world. Nope, it was all the governments fault.
Farber's world view has no room for compassion. Does he think that those people in Detroit who have worked hard and saved all their lives but have now lost their jobs and are in danger of losing their homes and healthcare and everything else as a result of the poor choices made by others should be left to their own devices? Why not, he is still rich. Why should he care?
Farber may be a great investor, but I would never let such a narrow minded ideologue make social policy for the rest of us.
been thrown out the window. Theft is ok, greed is God.
Joe has evolved and matured into one of the best analysts and deep strategic thinkers anywhere , bar none. He is always keen and razor sharp! And where do we see him , why, on CNBC.
There are a few other great ones like Joe on CNBC, but they are not given their due or just time, just like Joe isn't , because CNBC is much too bland, Corporate and bureaucratic for that.
Quentin Hardy on another channel is also excellent (and the ONLY one that is "fair and balanced" on that channel, if you know what I mean), and there are a few more , but not many as the readers have acknowledged.
Just glad to give Joe and Quentin a hand of well earned applause where I can , because unable to tell them directly, and they richly deserve it. The best of continued success to them.
Thx