Barron's : Who knows, really? Let's look forward to how current excesses might be corrected.
Marc Faber: At some point, there will be a big
reset. In the democracies of the Western world, large numbers of people
will vote against the well-to-do. Throughout history, minorities have
been targeted. Now the rich will be targeted through some kind of wealth
tax or significantly higher tax rates. Eventually there will be so much
antagonism against well-to-do people that it won't be comfortable.
Also, geopolitical conditions could
deteriorate badly in the Middle East and Asia. America's reset toward
Asia has alarmed the Chinese, who won't tolerate U.S. interference long
term in the region. Then there's the possibility of a Black Swan event.
If the S&P 500 drops 20%, the Fed will print more money, so that's
not a huge downside risk. But the bond market could collapse, inflation
could accelerate, or the Chinese economy could implode. Or we could have
a destabilizing political event, or a pandemic. - in Barron's