Faber said the good times cannot last.
"The
economic recovery, or so-called recovery, by June of next year, will be
in the fifth year of the recovery," Faber said. "So at some stage the
economy will weaken again, and at that point, the Fed will argue, 'Well,
we haven't done enough, we have to do more.'"
The noted bear has little admiration for the economists at the Federal Reserve.
"The
Federal Reserve—all of them—could be sitting on a barrel of dynamite,
and then pouring gasoline on top of it, and then light a cigar with
matches, throw the match into the gasoline, and then not notice that
there is any danger," Faber said. "That is the state of mind of the
professors at the Fed, who never worked a single [day] in business."
And
while Faber actually believes that a reduction in QE could happen, he
wouldn't view it as a true tapering, as he says it will be a largely
meaningless, one-time move that will eventually be reversed as the
economy worsens.
"They may do some cosmetic adjustments, but in
my view, within a few years, the asset purchases will be substantially
higher than they are today," Faber said.
- Source, CNBC
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
"The Federal Reserve—all of them—could be sitting on a barrel of dynamite, and then pouring gasoline on top of it, and then light a cigar with matches, throw the match into the gasoline, and then not notice that there is any danger," Faber said. "That is the state of mind of the professors at the Fed, who never worked a single [day] in business."
And while Faber actually believes that a reduction in QE could happen, he wouldn't view it as a true tapering, as he says it will be a largely meaningless, one-time move that will eventually be reversed as the economy worsens.
"They may do some cosmetic adjustments, but in my view, within a few years, the asset purchases will be substantially higher than they are today," Faber said.
