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Monday, January 7, 2013

Marc Faber 100% confidence for a global recession in 2013

In about two minutes interview for CNBC, legendary Marc Faber revealed his scary forecast for a global recession in 2013 for which he is 100% sure. He believes that the main risk is not Europe and Greece but China and India where they things look ugly and these most important economies are slowing down big. Still it seems the public is ignoring this problem. Marc still believes that the next risk off event will be the exit of Greece from the EMU. Still he believes that the Germany will finally give up and allow Eurobonds to save the EZ project. According to him the longer the delay for euro-bonds, exits, defaults and restrucrings, the higher the chance for a huge system failure an gigantic market crash, bank runs. The investor believes that the markets will not go down 50% once Greece exit but just the opposite, there will be a relief rally as there will be clarity. Still banks and insurance stocks will crash. Around the 5-th minute, Marc Faber talks that while stock indices are not performing terribly, there are many economically sensitive (and luxury) stocks that are down very significantly - which helps him see that the huge asset price run of the last decades is coming to an end prompting the question of the day from CNBC's Cramer-stand-in "You're not looking for a recession in the US are you?" Faber, in his calm, thoughtful way responds, "I think we will have a global recession late this year, early next year", to which surprised Wapner asked about the odds (surely 20%, 40%?) of this recession – and Marc said : "100% certainty" and of course the only 'investment' in this case is the USD cash and of course investors must own some gold.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber: If I were Bernanke, I would resign

Central bankers are "coiner" and Federal Reserve Chairman Ben Bernanke, the U.S. should resign for having ruined the U.S. economy, said Marc Faber, publisher of the Gloom, Doom and Boom Report, said on CNBC. In his words, Bernanke is one of the main supporters of the ultra-expansionary monetary policy, which is the cause of the recent financial crisis. "If I screw up so bad as Bernanke, surely I would resign. The mandate of the Fed to support asset prices and thus creates wealth is coming - it does not work like that. This is a temporary increase, which is always followed by collapse, "says Faber. "The only thing this achieves quantitative easing (QE), along with the continued operation Twist, is to redirect capital flows to the so-called Mayfair economy by raising asset prices," said Faber, whose popular name, as investors predict market collapse from 1987. Mayfair economy describes a system that favors the wealthiest circles of society. Faber said that this round of quantitative easing will not help ordinary people. "QE only helps the rich, whose assets rose. It does nothing for the people on the street to deal with the rising cost of living. This small part of the economy is booming while the rest becomes a victim of QE ", he said. "Printers money are to blame for this crisis. If we continue with this expansionary monetary policy will find ourselves facing a "fiscal gap" and to "Grand Canyon fiscal," he added. "If we in the western world economic crisis, it is because governments print up to 50% and more of money in the economy. It is a cancer that takes people's freedom, "he said.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.


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