Wednesday, June 1, 2011

High and Going Higher, Low and Going Lower

Pretty interesting commentary from Marc Faber in this Bloomberg video, considering he is usually a mega Asian bull. While his terminology for a recession is different than what is commonly used (two quarters of negative GDP growth) we saw what even a mild slowdown in China did post 2008 Olympics spending spree. If this comes to bear, the impact on the commodity market would be of course enormous as China is the world’s marginal buyer of everything, dominating some markets to the tune of 50% of all global purchases.

Ironically lower commodity prices would be helpful to the strained U.S. consumer, but I don’t think the stock market would be looking that far ahead. Anyhow, just one man’s opinion but someone I enjoy listening to. His indicators of why he is seeing bubble activity on the ground in China are also quite interesting. As for the Chinese market? It’s not acting well at all lately.


Marc Faber Predicts that China will Fall into Technical Recession in a Year


Marc also touches on the long term implications of the soaring inequality of wealth distribution in the U.S. – something I’ve been flagging from day one on this site.

Dr. Marc Faber lives in Chiangmai, Thailand and is the author of Tomorrow's Gold.

The Best of Marc Faber


View the original article here

Marc Faber News

Nouriel Roubini Blog

Jim Rogers News

Bob Janjuah News

Gary Shilling News

Warren Buffett News

Dennis Gartman

Doug Kass News

Suze Orman News

Rich Dad Poor Dad