Tuesday, November 26, 2013

Fed can continue to intervene in Financial Markets

The Fed could go into the market and buy the whole S&P 500 even if the market drops by 20 percent it is not cheap. The Fed would have to borrow money or issue money but basically they can do it. It has happened before. In Hong Kong in 1997, the government came in and bought the stock market but at that time it was cheap. 

Via http://drmarcfaber.blogspot.com

Thursday, November 21, 2013

China bubble burst to have devastating impact

I'm not overly negative in the Asian regions but if a bubble bursts in China it would have a devastating impact on the surrounding countries.

Most of the Asian economies are not growing much. Over the last 5 years, everywhere in Asia, the household debt as a percent of the economy has exploded, in other words a lot of growth was driven by unsustainable credit growth.

The household debt levels are relatively high, the asset prices are high, the affordability of buying homes has diminished and many countries have had currency weaknesses and their currency account surplus has turned to deficits.

Tuesday, November 19, 2013

Marc Faber on Copper, Oil, Iraq Stock Market

Faber comments on Copper and Oil:
"Copper could go down to 200 - 250 cents a pound. However oil will not drop to $30 a barrel."

Faber invests in Iraqi stock market:
"2 years I invested in Iraq stock market. The Iraq stocks are very cheap and the stock market could go up 100 percent."

Monday, November 18, 2013

Faber on Syria and Assad

I'm not defending Assad but he was better than his father and probably he is the better option than opposition leader and Al Qaeda units.

Wednesday, November 13, 2013

White elephant Investments

Every bubble will create some “white elephant” investments (investments that don’t make any economic sense under any circumstances), in financial economies’ bubbles, the quantity and aggregate size of “white elephant” investments is of such a colossal magnitude that the economic benefits that arise from every investment boom, which I alluded to above, can be more than offset by the money and wealth destruction that arises during the bust. 

This is so because in a financial economy, far too much speculative and leveraged capital becomes immobilized in totally unproductive “white elephant” investments.

Monday, November 11, 2013

Markets about to crash like Titanic

Marc Faber video compares the Global stock market to the famous ship Titanic.

Thursday, November 7, 2013

Marc Faber on Singapore, Hong Kong, Vietnam, Tech stocks, USA

Marc Faber says Singapore, Hong Kong not growing and the cost of living has gone up.
"Kicking the can down the road, each time they kick they hurt their foot a little bit more."

Additonally Dr Faber asks, why do product prices in Singapore, Hong Kong more than in US ? Watch the interview below to hear his take on that question and much more.

Tuesday, November 5, 2013

Marc Faber cautions economies not growing

The U.S. is hardly growing. Growth came from emerging markets and these emerging economies are essentially today in a no-growth environment. 

I live in Asia, so I am quite familiar on my observations on the ground. We have no recession that is visible. It is often seen like a pain. But we’re just at the high level of economic activity; no longer growing.

Read full text at Marc Faber Blog

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