Since Obama’s re-election, Marc Faber has been on an absolute tear, predicting PAIN for all involved in the global economy and financial markets (basically everyone on planet Earth). His latest interview is a beauty – which he began by telling the CNBC anchors that they should open up a psychiatric clinic because they make everyone feel so good about everything!
The financial system must be reset, Faber continued – and it won’t be done by central bankers, but by imploding markets! After which “we will all be lucky if we have 50% of the asset values we have today.”
He calmly stated that we have a choice of taking the pain now (in the form of austerity), or risk the “complete collapse of society in 5 to 10 years.” And since we are in a democracy, there’s no chance of us choosing to take the pain now.
Faber did have one positive forecast, in addition to his earlier psychiatric clinic tip. He believes that Southeast Asia (Thailand, Laos, Cambodia, Vietnam, Myanmar) could continue to do quite well over the next decade, as they are coming off such a low economic base while opening up to the rest of the world.
His CNBC sequel follows a stellar post-election Bloomberg performance, where Faber joked he was surprised that stocks were not down 50% or more on the news of Mr. Obama’s re-election.
He also made a very salient point that the re-election was largely the result of money printing by the Federal Reserve.
I think he’s right – forget the campaigns, demographics, and swing states – the Fed has the ability to influence elections more than all the other factors combined.
Hat tip JL for the text message alert on Faber’s CNBC appearance.