Tuesday, July 26, 2016
Marc Faber : When Rates are low People Save More & Do Not Spend
Marc Faber in Chicago Tribune :
"Young adults will earn less than their parents and die with less than their parents," Faber said, noting parents — when young — bought U.S. Treasury bonds paying 7 percent rather than bonds paying nothing today. They bought homes that appreciated greatly. Now, "young people don't have money to buy condos and houses," so they overpay on rent and are left without money to invest or spend. He blames central banks. "It's ludicrous to think that slashing rates will get people to spend." When rates are low, he says, you feel insecure as savings earn nothing. So, "you save more."
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.
Posted by Nicole Bourbaki