Friday, December 4, 2015

Unlike America At Least China has Productive Credit

TD: Marc, I’ve also seen you note that early American railroad companies, heavily indebted, mostly went bankrupt. But they left behind lots of physical assets created by the debt.
Currently, is Western society creating anything with all the debt? 

Marc Faber : Yeah, I love that question because when the people default on their household debt, mortgage debt, and student debt, I wonder what will be left behind. They will be people you can’t hire because they studied the wrong stuff.
The difference with the US is that if there is a massive default, nothing will be left behind. At least in China they will have railroads, tunnels, bridges, highways, airport infrastructure, port facilities and so on.
So I say that China, with all its shortcomings and faults, at least they have had productive credit until recently. Recently it has also changed somewhat. But at least it has been productive credit that builds something. Here in the US, credit is used largely for consumption.

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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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.

Dr Faber studied economics at the University of Zurich and, at the age of 24, obtained a PhD in economics. He publishes a widely read monthly investment newsletter The Gloom, Boom & Doom Report, which highlights unusual investment opportunities, and is the author of several books, including Tomorrow’s Gold – Asia’s Age of Discovery which was first published in 2002 and highlights future investment opportunities around the world. Tomorrow’s Gold was for several weeks on Amazon’s bestseller list and has been translated into Japanese, Korean, Thai and German. A regular speaker at various investment seminars, Dr Faber is well known for his contrarian investment approach. He is also associated with a variety of funds.