Sunday, February 23, 2014

Bubbles can get Bigger before they Burst

 Lelde Smits: Finally Marc, you have previously said we are in a “gigantic financial asset bubble”. What signs will you be looking at to indicate that the bubble may be about to burst?
Marc Faber: Well that is the tricky part of bubbles. They can get bigger before they burst and it’s never crystal clear that they will burst. But, according to William White who was at the BIS [Swiss-based Bank for International Settlements] before, total credit in the world today as a percent of world GDP is now 30 per cent higher than it was in 2007 when the last crisis occurred because of excessive credit. So I think that the global economy is extremely vulnerable as credit growth may slow down.  - in Finance News Network Australia

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.

No comments:

Post a Comment

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.