Friday, October 21, 2016

Marc Faber : European Banks are in a very poor Financial Condition




Latha: Over the next quarter or two quarters, what do you see as red flags for the market, could it be the European banking system for instance? 


Marc Faber : Yes, this is a concern. European banks are in a very poor financial condition. They will need more capital but in theory, the European Central Bank (ECB) and other central banks can essentially provide liquidity to the established banks and the governments if they like. They can basically bail out banks. They may have bail-ins here and there where some bond holders -- like there are coco bonds outstanding -- would get hurt to some extent but basically the government can essentially buy shares in the Commerzbank or Deutsche Bank and recapitalise them. As a result of that, the government will be an owner of the 50 percent of the bank or 30 percent or whatnot. That is all possible. We just don't know. We are writing a report about this in a not-so-realistic economic and financial world.-- in CNBC-TV18






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.