Friday, January 17, 2014
[VIDEO] Marc Faber: Fed Policy Has Led to Global Problems
Jan.14 (Bloomberg) –- Marc Faber Ltd. Managing Director & Founder Marc Faber discusses fed policies and how they're creating a two-class system with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)
Faber said that, “It is interesting that that despite of all the money printing, bond yields didn’t go down.” Instead, the bottom for 10-year bonds was hit in July 2012, when they reached 1.43 percent. Now, it is about 2.85 percent, Faber said. “But we’re up substantially. Now, this hasn’t had an impact on stocks yet. In fact, it pushed money into the stock market out of the bond market. But if the 10-years goes to say 3 percent to 4 percent, then the 30-year goes to close to 5 percent , the mortgage rates go to 6 percent. That will hit the economy very hard.” Faber predicted that it’s possible bubble could burst before then. “It could burst any day,” he said. Although “everybody’s bullish,” Faber took the contrarian position. “The global economy is slowing down, because the global economy’s largely emerging economies nowadays, and there’s no growth in exports in emerging economies, there’s no growth, in the local economies,” Faber explained. “So, I feel that the valuations are high, the corporate profits have been boosted largely because of the falling interest rates.”
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Dr. Marc Faber Tomorrow's Gold
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.