Thursday, September 15, 2011

The Market Economy is the Only properly functioning economy

Marc Faber : I have to make here a distinction , in Asian societies , if you do not work you have nothing nobody will give you anything government does not come in and helps you , the problem is that the baby boomers were born into a generation of entitlement , whatever you do if something goes wrong the government will step in and give it to you , you are sick the government will pay , you cause an accident in the highway , insurance paid by the government will pay , and and and ....All I am saying is basically if you want to have a properly functioning economy it has to be a market economy , if you believe in a market economy and capitalistic system you don't believe in government intervention, If you want to have a properly functioning economy it has to be a market economy with all its drawbacks and disadvantages and the pain for individuals. That is the only way it will function. - in Yahoo Finance

Cash & Bonds are not very desirable

Marc Faber : I think cash and bonds are not very desirable. Equity and precious metals look okay. However, there will be more volatility. The prices of anything, whether commodity or stocks, depend on many factors. As far as commodities are concerned, I think the global economy is slowing significantly and the demand for industrial commodities will not grow that fast.

The next crisis will be worse than the one in 2008

Marc Faber : We never really had a recovery in the Western world. The stock markets went up because of the money printing and support in 2009. My view is that they can probably muddle through for another two-three years by piling up the fiscal deficit or printing more money. I do not know when it will happen in 2012 or in 2018, but the next crisis will be worse than the one in 2008. - in business-standard.com
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Dr. Marc Faber author of the Gloom, Boom and Doom report is a world class Investor, Doctor Faber 's typically controversial and contrarian views have earned him the label of Dr. Doom. Doctor Doom also trades currencies and commodity futures like Gold Natural Gas and Crude Oil.Even his harshest critics must admit that he's been unerringly correct in his market forecasts over the past three decades . Marc Faber is a Swiss investor.He was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics magna cum laude. Between 1970 and 1978, Dr Faber worked for White Weld & Company Limited in New York, Zurich and Hong Kong. Since 1973, he has lived in Hong Kong. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK) Ltd. In June 1990, he set up his own business, which acts as an investment advisor and fund manager. Faber is publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd which acts as an investment advisor and fund manager.