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

[phirang]

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

Bloody deflationary black hole of death!

lol

[xela]

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

Bloody deflationary black hole of death!

lol

Hehe, I'm not selling, but am kinda happy to only have a small pos now.
Then again, I seriously gonna roflmao if at 500 your not gonna get the real deal but some paper shit

[friendly_jacek]

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

OK, I finely got a chance to watch it (BTW, thanks for everyone who replied to my previous post).
That is a hilarious interview. He has been saying lately that the equities were extremely oversold and ready for a multimonth bounce. Now, he hints that the ball is kaput.
If that is the case, then I see no end in sight for rising dollar and spiraling deflation. I checked the dollar chart in 2000-2001 and it went up non-stop for a year. Now, we are only 3-months into the deflation.
The thing is, I have a feeling that as soon I capitulate and sell my underwater PM and commodities, the poom wll start.

[kartius919]

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

From my understanding, the Poom must occur otherwise a long deflation will bankrupt the US government. We incurred way too much debt during the inflationary periods and simply can't pay them back if we enter a prolonged deflation. So it's "inflation or bust." Marc Faber believes that it will be deflation, the current actions to prop up borrowing/spending will fail, and hence the US will go out of business. Don't sell your physical PM. If we head into deflation and subsequent bankruptcy, it will be one of the few things that will be worth anything.

[LargoWinch]

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

From my understanding, the Poom must occur otherwise a long deflation will bankrupt the US government. We incurred way too much debt during the inflationary periods and simply can't pay them back if we enter a prolonged deflation. So it's "inflation or bust." Marc Faber believes that it will be deflation, the current actions to prop up borrowing/spending will fail, and hence the US will go out of business. Don't sell your physical PM. If we head into deflation and subsequent bankruptcy, it will be one of the few things that will be worth anything.

I disagree. Faber does not think we will experience deflation: Subscribe to his "GBD" report.

[kartius919]

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

What does his report say? I'm not subscribed. From a logical standpoint, global recession would seem to imply lower demand for commodity. This would lead to lower prices unless the supply of commodities is also cut as well. His comments regarding producers being hit harder along with the resource nations hit hardest seems to indicate deflation. Possibly because all nations are now printing money, will eventually lead to inflation? Short term I think it will be deflationary. When that will end and inflation will resume I don't know.

Listened to the Bloomberg interview again. He said that we might have a bout of deflation where the world governments will pump more money into the system that will lead to inflation.

[friendly_jacek]

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

I don't subscribe, but this lecture he gave on 10/11/08 gives you a lot of insight:
http://www.myprops.org/content/Marc-Fabers-Lecture/

He covers a lot of topics: gold merely as insurance rather than wealth (didn't Fred mention that recently?), zero hour effect of monetary stimulus having no effect on deflation (which is what is happening BTW), risk of WW III being conducted in non-conventional fashion (who knows, maybe Iranians are firing naked shorts of US financial stocks and US is shooting shorting ban flares in self defense; now, this idea was my own), etc.

I'm his big fan as you can see.

[ThePythonicCow]

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

The thing is, I have a feeling that as soon I capitulate and sell my underwater PM and commodities, the poom wll start.

Well, dang it, would you hurry up and sell then! Just be sure to let your good friends here on iTulip know beforehand.;)

[kartius919]

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

Those are really good videos. Thanx alot. Highly informative and glad I watched it. Did not assuage my fears one bit though. I wish he would discuss the derivatives mess including the absurd credit default swaps. Clearly those are killing every major bank and insurance company out there. This "netting" crap is bs. No way was there adequate risk assessment and premium payments. Those that sold them are clearly underwater, such as the sinkhole AIG, and running to the US gov't to pay off their stupid ass bets. I wonder if Faber has included the possibility of systemic financial failures caused by these derivatives. I have never seen him discuss this mess and wonder if he has taken this into consideration. I ask because I deeply respect the baldman's opinion.