Tuesday, October 13, 2015
Raising Interest Rates very difficult at the present time
Dr. Marc Faber told recently Bloomberg Television
"The market may not crash right away, but it's possible that it will," .
"It will enter a longer-term time-frame of unattractiveness and where prices may actually go lower, and significantly lower. We could have a decline like 1973-74, which was a slice of hope where the market cap going up, and then went down again,” he added.
"The problem is that they (the Fed) should have raised the rates, in my view, in 2011," he explained. "Now the problem is this that the global economy is slowing down remarkably, especially coming as the result of the slowdown in China. Then we have weakness in the euro and the Japanese yen, which reduces global GDP in U.S. dollar terms. And that lowers demand for goods from around the world," he said.
"In other words, world trade is going down and the U.S. Is obviously affected. In this situation, it would be very difficult to raise interest rates at the present time."
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.