Posts Tagged ‘stock markets’

This Bloomberg interview last November 2008 of notorious bearish commentator Marc Faber shares his thoughts on the recent recovery of global stock markets . Faber reveals some of the dynamics between the U.S. Dollar and asset markets, and how they move in opposite directions.

Faber also shares his criticism of monetary and fiscal policy in reaction to the financial crisis–which are all geared towards consumption, when he mentions the solution is to improve savings rates and production rates, similar to Peter Schiff’s comments. He also criticizes the bailouts of banks financial institutions which practically exonorate their bad investment and lending practices which created originally the housing bubble and the subprime mortgage bubble and subsequent crash.

He also expects the current rally to go a little further, as far as January to March of 2009 as Global Central Banks inject liquidity which will prop up asset markets. Afterwards, the recessionary pressures begin to reassert themselves. Faber is still in favor of acquiring assets that are outside the U.S. Dollar, especially precious metals such as gold to weather the crisis.

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