As the market continues up – and may continue to go up – voices like Faber’s increasingly sound like the voices which warned of the impending housing bubble crash circa 2006-2007.
Faber is a smart guy who has been wrong and he has been right. He was particularly sharp in February of 2009 when he called the bottom of a market he didn’t want to buy. I remember him doing this so I listen when he speaks.
Be sure they have to pay more and more for everything they buy.
Where do modern economic bubbles come from? They come from the world central banking system, chiefly the Fed, the prime mover of crony capitalism.
From the very beginning people have asked how the Fed would ever exit its Quantitative Easing program. Every time the Fed has indicated that it would stop its extraordinary measures the markets dip. Look at this chart.
There appears to be nothing under this market but freshly printed hundred dollar bills, cotton candy, and unicorn wishes. Throw in a good bit of marginally positive animal spirits too.
Faber says that the Fed will not taper its efforts but will instead be forced to print even higher amounts than the $85 billion (who knows) in funny money it is currently pouring into the world economy every month.
Are the Japanese as irrational as they seem?
In this presentation given recently in Dubai, legendary investor, Marc Faber, explains the folly of current monetary policy.
The only thing I don’t like about Marc Faber is his ponytail. As for his analysis, he has been right on over and over. He thinks the actions of the Fed are disastrous and even said this morning that “the monetary policies of the US will destroy the world.”