Marc Faber on CNBC - Oct. 21/08 (?)

[LargoWinch]

"the rebound is like a tennis ball"

"indexes may not hit new highs...ever"

Ok I feel better now Marc!

[bill]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Faber on Bloomberg,
1:30 he said
"Government goes out of business"!
http://www.bloomberg.com/avp/avp.htm...0Dq_d8mCjA.asf

[Jim Nickerson]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

BOTH GOOD INTERVIEWS. I didn't listen to all the second one.

One thing Faber said in effect: Lending and borrowing is what has gotten the US into the mess, and the "prescription" by Dr. Strangelove Bernanke and his instrument of mass destruction (paulson) is to get the banks to loaning again and the populace and corporations borrowing again. And to me that seems to be the plan.

It strikes me as "this goddammed alcohol is killing you, so what you need is to drink more of this goddammed alcohol."

[LargoWinch]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

BOTH GOOD INTERVIEWS. I didn't listen to all the second one.

One thing Faber said in effect: Lending and borrowing is what has gotten the US into the mess, and the "prescription" by Dr. Strangelove Bernanke and his instrument of mass destruction (paulson) is to get the banks to loaning again and the populace and corporations borrowing again. And to me that seems to be the plan.

It strikes me as "this goddammed alcohol is killing you, so what you need is to drink more of this goddammed alcohol."

Sad but true Jim. Sad but true.

One thing I found out over the years is that Faber is often so right that he is too early and "ahead of the curve" (ex: his US dollar rally call this summer), hence "trading" based on his comments can be risky.

[The Outback Oracle]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

True Largo...but he's worth watching...he 'calls a spade a bloody shovel' as we say down here and has pretty good humour while doing it.

[xela]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Doom alright, at basically 1'18 he predicts failure to re-inflate (reignite credit growth) with a depressionary outcome in asia and a collapse of ressource producing nations. What are they gonna do with their huge forex reserve then? :rolleyes:
Japan blinking before China despite their agreement not to dump?
World of hurt..

[touchring]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Doom alright, at basically 1'18 he predicts failure to re-inflate (reignite credit growth) with a depressionary outcome in asia and a collapse of ressource producing nations. What are they gonna do with their huge forex reserve then? :rolleyes:
Japan blinking before China despite their agreement not to dump?
World of hurt..

Reserves are very useful in a deflationary environment. You can use them to pay workers that are out of job. You can use them to guarantee banks, and in due process sucking out money from America and Europe.

[xela]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Reserves are very useful in a deflationary environment. You can use them to pay workers that are out of job. You can use them to guarantee banks, and in due process sucking out money from America and Europe.

Yeah, but he calls a deflation, not a short time of disinflation as I understood it.

[Rajiv]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Keep in mind that Itulip has redefined disinflation to mean "short term deflation that is not self reinforcing" instead of their prior definition of slower rise in inflation -- see some of Finster's threads on this issue.

[phirang]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Keep in mind that Itulip has redefined disinflation to mean "short term deflation that is not self reinforcing" instead of their prior definition of slower rise in inflation -- see some of Finster's threads on this issue.

Well, itulip definitely got the "ka" bit right... we need China to blink before we start getting some "poom".

[Rajiv]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

I think that the severity of the "Ka" took EJ by surprise -- he has been the most pessimistic that I have seen him be in a long time!

[phirang]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

I think that the severity of the "Ka" took EJ by surprise -- he has been the most pessimistic that I have seen him be in a long time!

Without a serious "ka", the US can't get China to buy its mortgages... Paulson and Larry Kudlow both seemed reasonably confident that would happen and force people out of t-bills and into the tail of the curve: operation twist all over again.

I'm still holding on to gold miners, in anticipation of the eventually poom. That said, I do expect the poom to be transient, and so timing will be necessary.

[friendly_jacek]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

I'm at work and can't watch it. Is he still bullish on USD? The USD is killing my bets and I wish I listened to him in summer.

[xela]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

Keep in mind that Itulip has redefined disinflation to mean "short term deflation that is not self reinforcing" instead of their prior definition of slower rise in inflation -- see some of Finster's threads on this issue.

I certainly did keep that in mind. IMO "4, 3, 2, 1 ... Deflation!" is the scariest post here :eek:
"It" certainly isnt short term anymore, and I don't see right now what might cause "it" not to be self reinforcing (whats holding Ben up?)
As Finster quite clearly says this is a full bore deflation, and it's accelerating. Gold doesnt even bloody react to the lastest FedRes stunt, oh well fu(k it all...?

[don]

Re: Marc Faber on CNBC - Oct. 21/08 (?)

I think that the severity of the "Ka" took EJ by surprise -- he has been the most pessimistic that I have seen him be in a long time!

Keep in mind he has a fat tome sitting on his chest that's growing heavier the longer Ka lasts.