Monday, December 1, 2014

The Oil Price Decline is not necessarily very good for the United States

REGAN: I want to get back to Marc Faber, editor and publisher of the Gloom, Boom and Doom Report, who’s joining me right now via Skype. Marc, let’s talk a little bit about crude oil as we talk about some of these commodities here. You just told me you thought gold won’t necessarily be going higher any time soon, but over the long run a good investment. We’ve got crude oil now closing below $80 for the first time since June of 2012. Is there any floor in site here for oil or do you expect the slide to continue?

FABER: Well basically if oil falls below $75 to $70, I don’t think it will stay there because a lot of production will be cut and exploration will be cut, and actually some companies will get into serious trouble financially. The oil price decline is not necessarily very good for the United States. It helps the consumer to some extent, but a lot of capital spending has gone into oil and natural gas, and some of these companies are already today cash flow negative. So if oil prices went lower, it may actually have an adverse impact on the US economy. - in a recent Bloomberg Interview

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.

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