Tuesday, October 21, 2008

Marc Faber on Bloomberg TV

Marc Faber joined Bloomberg TV yesterday for an extended guest interview segment.

While the emphasis of Bloomberg's story was on Marc's view of the stock market, there were far weightier issues discussed in this interview.

Within the first several minutes of this clip, you'll hear Faber's views on government stimulus and interventions, the needed workings of the market, the reality of a current US recession, and the very economic survival of this country and other sovereign nations.

Here are some quotes pulled from Bloomberg's print article:

"``The governments in this world have no other option but to print money. That will lead down the road to inflation,'' Faber said. ``You don't need to be an economist graduated from Harvard to know we're already in a recession. They will just put white paint on a crumbling building...''

...The U.S. economy slipped into recession a year ago, Faber said, and it won't recover until consumers and the government reduce spending and borrowing. Economists project U.S. gross domestic product fell 0.1 percent in the third quarter, according to data compiled by Bloomberg.

``To rebuild economic health in the United States, you need a serious recession that will last several years,'' he said. ``The patient that got drunk on credit growth needs to go into rehabilitation. To give him more alcohol, the way the Fed and the Treasury propose to do, is the wrong medicine.'' "

Serious stuff. And in my view, very right on.

As we've said here before, the problems we are currently facing are rooted in the excesses arising from artificially cheap money and credit.

It's extremely unfortunate that we have allowed the government and the Fed to appoint themselves problem-solvers for an enormous set of problems they helped create.

Related articles and posts:

1. "US faces recession, Bernanke's stimulus" - Finance Trends Matter.

2. "Jim Rogers speaks with Bloomberg TV" - Finance Trends Matter.

3. "Marc Faber speaks with Bloomberg" - Finance Trends Matter.

4. "Understanding the Crisis" - Mises.org.

1 comment:

lg said...

Good Stuff