It’s pointless to talk to Fed members
about economics because they are academics who believe in money
printing. Some of them believe they didn’t print enough, and so with
these kinds of people, it is like running to the pope. What do you want
to tell them? It’s pointless to spend time with these people trying to
convince them that their monetary policies have been very destructive.
They bailed out Mexico in 1994, and there was an EM bubble until 1997.
They then bailed out LTCM (Long-Term Capital Management), which gave a
signal to leverage up...then they had the Nasdaq bubble, then they
printed again and had the housing bubble. David Hume and Irving Fisher
said bubbles are very destructive to the majority of market
participants. They lose money, the minority makes money. The Fed doesn’t
see it that way so it is pointless to talk to these people.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
