...in an economy driven by liquidity accept this very different proportions. The benefit that instigate these bubbles can then be significantly lower than the destroyed by the bursting of such bubbles prosperity. Because there is too much speculative and leveraged capital within the game. There are just too many white elephant 'investments made.
The crises of the past decades due to Faber's view on interest rates too low. In every crisis, but the banks increased the dose they took a more expansionary monetary policy. The patient, however, the real economy, more and more immune to it. So the doctor increased the dose and on. Although the medicine brings temporary relief, but it does not eliminate the cause. The liquidity-driven economy, it is growing like a cancer, according to Faber and on. And that will, as Karl Marx predicted, lead to the ultimate collapse that will put the foundations of our capitalist society on fire.
How it will actually go out is open. Investors should nevertheless take the warning seriously, because the end result will be a violent crash in the capital markets. - in Zerohedge
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.