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XMFSinchiruna (27.97)

Marc Faber: The Worse the Economy Gets, the More Stocks Will Go Up ... (until the big collapse)

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September 09, 2009 – Comments (8)

He pretty well summed up my feelings about Bernanke's reappointment. :)

The suggestion that systemic risk has been reduced by the interventions enacted is severely misguided. Quite to the contrary, reflation buys time, but ultimately INCREASES systemic risk by feeding the derivatives monster that lurks. In this, I entirely agree with Faber's view.

8 Comments – Post Your Own

#1) On September 09, 2009 at 11:28 PM, awallejr (82.72) wrote:

Well he does make a ton of assumptions, most notably that there will be continual stimulus programs and continual bailouts and continual money printing by the Fed. Ultimately he predicts war.

But as for who is to blame for this mess, I've said this over and over, changing Glass-Steagall Act in 1999 to allow shadow banks into the mortgage business was your true cause.  If Congress  hadn't, Lehman and Bear, Stearns would still be in business today. 

I think he went over the top in this interview.

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#2) On September 09, 2009 at 11:56 PM, XMFSinchiruna (27.97) wrote:

awallejr

You're singing to the choir about Glass Steagall. :)

http://www.fool.com/investing/general/2009/03/17/whos-more-to-blame-the-repeal-of-the-glass-steagal.aspx

http://www.fool.com/investing/general/2009/03/24/whos-more-to-blame-derivatives-or-the-glass-steaga.aspx

http://www.fool.com/investing/general/2009/04/06/whos-more-to-blame-wall-street-or-the-repealers-of.aspx

http://www.fool.com/investing/dividends-income/2008/09/25/the-worst-kind-of-deja-vu.aspx

I would call them projections more than assumptions, and I share them. We will have more bailouts and stimulus programs, and there will be more QE. When faced with insolvency, war could easily result.

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#3) On September 10, 2009 at 12:02 AM, awallejr (82.72) wrote:

Well with the whole knock on the cost issue regarding the Health Bill, and the public getting pretty much fed up with all the bailouts, I think there will be pressure in keeping things in check. As for war, the days of world wars ended when Russia developed the nuclear bomb and other countries as well. 

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#4) On September 10, 2009 at 4:03 AM, kaskoosek (92.46) wrote:

Faber is the smartest economist bar none.

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#5) On September 10, 2009 at 11:23 AM, AdirondackFund (< 20) wrote:

Bar none ... I agree.   I like the Farm and machine gun bit.  What a world we are allowing to be created for ourselves.   

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#6) On September 10, 2009 at 12:46 PM, givmeabreak (29.21) wrote:

2 thoughts when I watch Faber speak:

1. Jim Carey in Ace Ventura: "to know ze dolphin, you must be ze dolphin".

2. What is up with the single pig tail on the back of his head? Is that a pig tail mullet? Cut that thing off Faber. A bald guy with a pigtail is terrible.

 Sorry, I know those are not important in the big scheme of things, but I have to find humor in all of this mess or I will lose my mind...

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#7) On September 10, 2009 at 2:36 PM, PeteysTired (< 20) wrote:

givmeabreak

Thanks for making me laugh.

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#8) On September 10, 2009 at 5:03 PM, amassafortune (29.67) wrote:

Where is Volcker, anyway? He must disagree with giving tax money to people with a proven track record of wasting it, or he'd be on the Sunday morning shows. Sunday is for team players. 

Stimulus money will reverse this recession like Nixon's 1971 price controls reversed inflation. 

 

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