Marc Faber - Economy Collapse & 'Ponzi Finance'
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http://edition.cnn.com/TRANSCRIPTS/1507/22/qmb.01.html MARC FABER, EDITOR AND PUBLISHER, "THE GLOOM, BOOM, AND DOOM REPORT": What has been happening lately is that a lot of stocks have not reacted favorably to actually good numbers. You look at General Motors, it's down 20 percent already. And the auto sales in the US were very good. I believe that if you look at the world, there are some people who believe that the global economy is healing and will expand at an accelerating pace. But I can tell you living in Asia and observing especially the Asian economies and emerging markets in general, most emerging economies are either not growing or slowing down very considerably, like China, where for the first time in many years in June, car sales were down, where freight traffic is down. And you only have to look at industrial commodity prices. They have tumbled. Collapsed. Usually this happens in a period of economic weakness, not strength. HARLOW: So, what about those, though, that point out, look, you cannot have sort of quarter-on-quarter, year-on-year ten percent growth in China, right? Jamie Dimon talking about it in the JPMorgan conference call the other week, saying do not get too concerned about this. We still saw China's numbers, if you take them at face value, coming in at 7 percent growth. (LAUGHTER) FABER: Yes, that is what they're telling you. Do you ever believe what governments are publishing? (LAUGHTER) FABER: You have to look at statistics that actually reflect the economic reality and the truth and not believe the Ministry of Truths in the world. HARLOW: Let's talk about Europe and Greece and the ECB. (LAUGHTER) HARLOW: You came out this week and you pointed to what you -- (CROSSTALK) FABER: You want to change the subject. HARLOW: Well, I don't want to change the subject, but I do want your take on this, and that is what you call Ponzi finance, in terms of the ECB. FABER: Yes. HARLOW: -- and the dealings with Greece. Explain. FABER: Yes. Well, I think that Greece is in a very difficult position, and basically they have had austerity, their GDP is down more than 25 percent over the last few years. But the debt has continued to expand, partly because of imprudent lenders, you understand? The private sector would never have lent that kind of money to Greece. But the ECB and the EU and the IMF, they all lent that money. Now Greece cannot pay, this we all know, and the IMF also says so. Greece needs a haircut according to the IMF of about 30 percent in their debts. I would think that minimum 50 percent of Greek debts have to be written off. So, what happens is, the EU will lend the money so they can repay the IMF and the ECB. It's a complete joke. HARLOW: So -- FABER: And the austerity that is being imposed on Greece will make matters even worse. Greece will stay in depression.
Comments
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so far in 2016 the money has been on the long side; china has rallied, the world has not fallen apart! Unemployment numbers have been very good and wait until this weeks report when they will be better than expected. Gloom and Doom merchants appeal to the negative cognitive bias we all need to protect against. 55 years ago when I began trading I listened to these purveyors or pessimism...I have made many mistakes as a trader...but listening to them was my grandest. best wishes to all
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what an idiot, given the choice of two disasters he want them both; check his record..perpetual pessimist. Where is the bear market???new highs in the Dow!!
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Marc Faber, modern Nostradamus.
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Mark Faber you are adorable!
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Dow down 530 points today, muhaha! Marc Faber, you bastard lol.
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Gotta love his laugh!
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Thats why I love listening to marc ( mr tell it like it is! )
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the CNN Media Whore tries to get away from Marc's answer with responding "I don't want to change the subject but"... BUT of course that's exactly what she does - all the while as Marc laughs at her. That's the Tribe for you.
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