Tuesday, October 11, 2016
Negative Interest Rate – Negative for The Economy
Fed To Hike Interest Rate in December?
Q : But under those circumstances, assuming that the Fed hikes interest rate by 25 basis points, how much leeway does it have to increase the rate beyond that?
Marc Faber : My view is that the U.S economy has been slowing down over the last 12 months and corporate profits have been coming down, and so it’s not a good time to increase interest rate. On the other hand, the Fed lowered the rate to almost zero in December 2008. So in December 2016, in eight years, at zero interest rates, the economy must be stinking if you can’t increase interest rates during eight years of an expansion so something is wrong. So my view is that they should have already increased it in 2011 and they should increase it now.
I think on balance, zero interest rate – and now there are many voices that propose negative interest rate – is rather negative for the economy. - in Bloomberg Quint
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.
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.