Skip to comments.Marc Faber Warns Global Stock Markets Will Implode
Posted on 11/14/2012 6:11:00 PM PST by blam
Marc Faber Warns Global Stock Markets Will Implode
Stock-Markets / Financial Crash
Nov 14, 2012 - 04:09 AM
In this "Squawk Box" excerpt, Marc Faber warns investors to prepare for an eventual "'reset" of the global financial system:
The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.
There will be pain and there will be very substantial pain. The question is do we take less pain now through austerity or risk a complete collapse of society in five to 10 years time? In a democracy, theyre not going to take the pain, theyre going to kick down the problems and theyre going to get bigger and bigger.
In the Western world, including Japan, the problem we have is one of too much debt and that debt now will have to be somewhere, somehow repaid or it will slow down economic growth, stated Faber. I think we lived beyond our means from 1980 to 2007, and now its payback period.
Click here to see the Marc Faber video.
The DJIA closed down 185.23 today.
5-10 years? Seems somewhat optimistic to me.
What does someone do? Physical gold? Farm land?
It would all work out faster if we let all the liberals starve ASAP
Well, thank goodness we stopped doing that!! Tell me, what happened in 2008 which ended the era of "living beyond our means"?? [/s]
Pay off your debts so you're not a "slave" to them.
Be passionate about what you do.
Don't lose sleep or worry about things outside your control.
Cancel your cable or satellite television and live your life as a free man.
Adopt my tagline, too.
Dems forced banks to lend to anyone, Every other commercial was to take out a second mortgage on you house to take a vacation. The market for debt was the bubble that burst.
Now vast majority of US has less than $500 savings and large portion of home ‘owners’ are technically bankrupt as they owe far more than the house is worth.
The solution that is being applied is to inflate these folks out of bankruptcy and stimulate spending by making things more expensive tomorrow than they are today.
The Gubamint cheese lines will be hugh.. I predict.. but not as hugh as the lines for iPhones.
Good post, and trying to do all those things in a decrepit, really tired kind of way. Still, moving forward is moving forward.
In 2008, borrowing on the credit card of housing price escalation came to an abrupt end.
I was amazed on finding out how many of the homes in our subdivision had borrowed more money (by extending their mortgage amounts) based on ever increasing values of their homes.
I recognize that the point being made is that the marketplace was skewed by easy bank lending, and that many private people spent more than they had, confident that things would just go up and up and up. That came to a halt when the housing bubble burst. But to say that -- and to say nothing more -- is to place the blame solely on banks and consumers within a (relatively) free market system. Those bad boys! They tried to live beyond their means! But that's all over with now!!
The point is that the damage done by government in "fixing" the mess is completely glossed over. Trillion dollar deficits? [shrug] I don't see an issue with that -- it's not like anyone is living beyond their means. We stopped all that, didn't we????
Ownership Society, anyone? Taking a party position on this is dishonest. The real estate bubble that was the foundation of the current depression (let's call it what it by it's real name), created by key dem and rep players and blessed by the establishments of both parties and fueled by cheap money from the fed.
Which means that we lived beyond our means times four from 2008 to 2012.
Yet this Squawk Box talking head can't bring himself mention anything past 2007.
I’d love to get some expert advice! When I search pnline I’m just bombarded with ads and sites selling something
I am in my early 50’s. House is paid off several years ago. No debt at all. The 401K has no provision for collapse. Best is money market, but that could be wiped out by inflation or govt seisure of retirement accounts. I have some IRA and Roth funds that could be moved into gold or real estate investments. I could quit my job so I can get control of my 401K. I think I could retire easily.
I am no financial expert, in fact I don’t know anything about the Stock Market ,and I am not even very bright.
But I knew when Obama was re-elected that the Stock Market was going to turn to crap.
That was an easy one.Obamacare is going to ruion a lot of business’s Many Corporations and small business’s are already laying off and the worst has yet to come.
They wanted 4 more years, they got it.The defecation is about to hit the rotating device.
Nothing like a money market fund for those oh so safe credit default swaps.
Romney worse than a American hating Muslim Marxist ?
Bring it. I’m all out. I’m taking physical possession of lead.
DEFUND. Prepare. Persevere.
The trillion dollar+ deficits are a result of the great recession of 2008. As revenue dwindled as jobs were lost (millions less jobs now versus 2007) there was no belt tightening of the welfare benefits. Just the contrary, for example, requirements to qualify for food stamps were reduced and unemployment was extended to 99 weeks.
You are correct in that government is not subject to laws of private sector where corporations must adjust to conditions.
Good luck with any planning for a “doomsday” scenario. The problem there is that a major collapse would have ripple effects that may not be anticipated — which means even your “doomsday” investments aren’t any good, either.
Blacks are still slaves...just a different master holding the chains.
They should, but they won't. They are addicted. There is always some 'excuse'.
“fueled by cheap money from the fed.”
And it isn’t going to end any time soon.