Marc Faber of http://www.gloomboomdoom.com was interviewed on Bloomberg Tv on 5th August 2011.
He mentioned that the current leg down is not really a major market selloff. That being said, he also said that 'whereby as of today, the markets are extremely oversold'.
He thinks that there could be a 'snap back' rally that does not register a ... (more)
To an extent not fully appreciated by the investing public, financial markets are influenced by human emotion just as much as they are by economic data, corporate earnings, and dividend yields. Of all human motivations, fear is perhaps the most powerful. When people get scared, the “fight or flight” instinct forces us to take action.
Simple dangers prompt simple responses. If we unexpectedly encounter a bear on our driveway, we immediately run into the house and call ... (more)
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.
Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less ... (more)
Would you invest in a company which is $14 trillion in debt, has over $100 trillion in unfunded liabilities, has revenues falling, and is actively diluting it's shares? U.S. bonds are junk bonds. - Chris, InfoLib
After three-plus years of floundering around, a consensus has finally arrived that we are back in recession. Growth is not happening. The meager statistical growth of the past few years — no one dared claim it amounted to full recovery — was probably illusory.
There is real growth, and there are government statistics. The statistics have misled every gullible person, but now the truth is obvious to everyone. Not only that: we face an impossible debt calamity, the banki... (more)
Can you imagine if a public corporation did this? "Too many people are buying our stock, so we're going to ruin its value by diluting the shares." There would be outrage. Central banks do it and the media hails it as "fighting back" against "speculators." - Chris, InfoLib
The bear market is on its way back, economist and contrarian investor Marc Faber, the editor and publisher of The Gloom Boom & Doom Report told CNBC Tuesday.
"The bear market is starting. When you compare equities to bonds and cash I don't think equities are very positive," Faber said in an interview. [...]
The government is spending taxpayer's money to help banks get rid of their unwanted homes, only to then have the homes demolished in order to keep housing prices unaffordably high.
By supposedly compromising to raise the debt ceiling, Congress and the President have now paved the way for ever higher levels of federal spending. Although, the nation was spared the trauma of borrowing restrictions, the actual risk of default existed solely in the minds of Washington politicians. But the real crisis is not, nor has it ever been, the debt ceiling. The crisis is the debt itself. Economic Armageddon would not have resulted from failure to raise the ceiling, but it will come becau... (more)
Perhaps the debt ceiling should be renamed the "national debt target," for it seems Washington is always trying to reach it. One could say it's their only reliable, time-tested achievement. And without fail, upon reaching their national debt target, they promptly extend it further in order to discover how quickly it can once again be attained!
While I have little doubt that the ceiling will be raised, my readers have been curious as to the implications for gold in ea... (more)
"I think what would be dangerous for you and me would be to put all our money in US dollar cash and in US government bonds for ten years and then come back and maybe find out that we can buy with a hundred thousand dollars just a cup of coffee -- or not even that."
Marc Faber gives a superb hour long interview on Financial Sense Newshour (July 15th, 2011... (more)
Marc Faber expects a debt agreement, but nothing that helps in the long run. He tells King World News:
“Yes, I’m sure there will be an agreement, but it doesn’t solve the fundamental problem of excessive debt and of further, very substantial deficits. They’ll iron out something with lots of compromises and with spending cuts that are backloaded, in other ... (more)
There are 5 days until the default date of August 2nd. How will this affect everyday Americans? While Obama and Boehner play chicken Jim Rogers, co-founder of Quantum fund, sounds off on the economic issue. Is this a political charade?
A one-time limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act has uncovered some eye-popping corruption at the Fed and the mainstream media is barely even covering it. It turns out that the Federal Reserve made $16.1 trillion in secret loans to their bankster friends during the financial crisis. You can read a copy of the GAO investigation for yourself right here. These loans only went to the "too big ... (more)
Short animation arguing for re-introduction of gold as money because of its independence. Written and narrated by Dominic Frisby. Animated by Pola Gruszka. Sponsored by Gold Resource Corporation.
We’re often told that the budget can’t be cut without all of us sacrificing. This is used as a rationale to raise taxes. But it need not be that way.
After all, aren’t we also told that everyone benefits from the government? Surely the poor do, or so we hear. And the middle class? Of course we all are blessed to have the federal government be as active and large as it is. That’s what it’s mainly there for, all the politicians tell us.
Yesterday I read about a new company called Alta Bicycle Share in Forbes magazine. The service is pretty simple: At docking stations users can rent bikes with the swipe of a credit card.
Immediate problems with the service come to mind. Personally, I don't commute with a bike and neither do most people. The Zipcar service is one thing, but a rentable ... (more)
Ludwig von Mises noted that by calling their program "welfare" the economic interventionists slanted the debate in their favor, for who could oppose such a thing? Everyone wants welfare in the broad sense. Indeed, the "general welfare" is a principle, however confused, affixed in the Preamble of the U.S. Constitution.
Today, welfare has lost its rhetorical advantage. Ever since the bipartisan welfare reform of the 1990s, the word "welfare" has not had the positive c... (more)
Before the US House of Representatives, Statement on the Cut, Cap, and Balance Act, July 19, 2011
Mr. Speaker, I rise to speak against HR 2560, the Cut, Cap, and Balance Act. This bill only serves to sanction the status quo by putting forth a $1 trillion budget deficit and authorizing a $2.4 trillion increase in the debt limit.
When I say this bill sanctions the status quo, I mean it quite literally.
Doug Casey on protecting yourself from US tyranny.
Foreign exchange controls will almost certainly attempt to keep you and your wealth under US government control, to be plundered. You must go international to diversify away from this mounting political risk. And do not fear: Most other parts of the world are both safer and mellower for you and you... (more)
As part of its most recent issue the New Yorker has released a must read interview with Ray Dalio – head of the world’s biggest hedge fund, Bridgewater.
Dalio’s fund, which according to some may now be as large as $80 billion, continues to outperform even in this problematic environment, indicating that unlike various other manag... (more)
