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Marc Faber Warns Global Stock Markets Will Implode
TMO ^ | 11-14-2012 | Marc Faber

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, they’re not going to take the pain, they’re going to kick down the problems and they’re 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 it’s payback period.”

Click here to see the Marc Faber video.


TOPICS: News/Current Events
KEYWORDS: djia; economy; markets; recovery

1 posted on 11/14/2012 6:11:03 PM PST by blam
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To: blam

The DJIA closed down 185.23 today.

2 posted on 11/14/2012 6:12:44 PM PST by blam
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To: blam

5-10 years? Seems somewhat optimistic to me.


3 posted on 11/14/2012 6:19:06 PM PST by gorush (History repeats itself because human nature is static)
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To: blam

What does someone do? Physical gold? Farm land?


4 posted on 11/14/2012 6:21:17 PM PST by MtnClimber (Ccies)
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To: blam
Obama inherited this from Obama.
The Bush economy was fine till Nancy Pelosi took over the house. ~ 15% down side left.
5 posted on 11/14/2012 6:21:50 PM PST by outofsalt ("If History teaches us anything it's that history rarely teaches us anything")
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To: gorush

bump

It would all work out faster if we let all the liberals starve ASAP


6 posted on 11/14/2012 6:22:03 PM PST by GeronL (http://asspos.blogspot.com)
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To: blam
“I think we lived beyond our means from 1980 to 2007"

Well, thank goodness we stopped doing that!! Tell me, what happened in 2008 which ended the era of "living beyond our means"?? [/s]

7 posted on 11/14/2012 6:24:22 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: MtnClimber
I would advise someone to "invest in yourself." Get an education, or training in useful skills. I don't mean a formal education or a racket like that, either. Find a new potential field of work even if you're gainfully employed, and learn as much about the new field while you can.

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.

8 posted on 11/14/2012 6:24:50 PM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: blam
This is the last thing I posted by Marc Faber:

MARC FABER: Obama Is A Disaster, The Stock Market Should Have Fallen 50%, And You Should Buy Yourself A Machine Gun

9 posted on 11/14/2012 6:38:38 PM PST by blam
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To: blam
There will be pain and there will be very substantial pain.

Nonsense!

Obama will be there to cut the pain and give everyone all the free stuff they need to get by.
10 posted on 11/14/2012 6:43:40 PM PST by adorno
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To: ClearCase_guy

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.


11 posted on 11/14/2012 6:46:12 PM PST by jonose
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To: blam

The Gubamint cheese lines will be hugh.. I predict.. but not as hugh as the lines for iPhones.


12 posted on 11/14/2012 6:47:35 PM PST by NormsRevenge (Semper Fi)
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To: Alberta's Child

Good post, and trying to do all those things in a decrepit, really tired kind of way. Still, moving forward is moving forward.


13 posted on 11/14/2012 6:48:33 PM PST by Psalm 144 (Voodoo Republicans. Don't read their lips. Watch their hands.)
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To: ClearCase_guy

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.


14 posted on 11/14/2012 6:50:54 PM PST by entropy12 (3 new SCOTUS appointments by Obama will ensure killing of unborn for next 30 years)
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To: blam

But Obama created 50 Trillion jobs last year and stopped the oceans from rising ...

And then a light shown down and idiots voted for Barack ...


15 posted on 11/14/2012 6:54:46 PM PST by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: entropy12
I understand that. But, starting in 2008, this country began runnign trillion dollar annual deficits. So, when the article states that the era of "living beyond our means" ran from 1980 to 2007, I have a problem.

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????

16 posted on 11/14/2012 6:57:53 PM PST by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: jonose
Dems forced banks to lend to anyone, Every other commercial was to take out a second mortgage on you house to take a vacation.

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.

17 posted on 11/14/2012 7:02:29 PM PST by Orangedog (An optimist is someone who tells you to 'cheer up' when things are going his way)
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To: blam
“I think we lived beyond our means from 1980 to 2007, and now it’s payback period.”

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.

18 posted on 11/14/2012 7:07:59 PM PST by FreeReign
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To: MtnClimber

I’d love to get some expert advice! When I search pnline I’m just bombarded with ads and sites selling something


19 posted on 11/14/2012 7:09:21 PM PST by Cookies4ever
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To: Alberta's Child

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.


20 posted on 11/14/2012 7:18:09 PM PST by MtnClimber (I did not vote for 0bama, someone else did that!)
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To: jonose
The Village Voice had a story about this back in 2008 (here)
21 posted on 11/14/2012 7:19:15 PM PST by Sgt_Schultze (A half-truth is a complete lie)
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To: blam

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.


22 posted on 11/14/2012 7:22:49 PM PST by Venturer
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To: MtnClimber
Best is money market,....

Nothing like a money market fund for those oh so safe credit default swaps.

23 posted on 11/14/2012 7:34:00 PM PST by Stentor (Shhhh!)
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To: blam

What ?
Romney worse than a American hating Muslim Marxist ?


24 posted on 11/14/2012 8:12:20 PM PST by ncalburt (Axelrod Psych OPS has gone to 24/7 non stop - "The election is over " status until Nov)
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To: blam

Bring it. I’m all out. I’m taking physical possession of lead.

DEFUND. Prepare. Persevere.


25 posted on 11/14/2012 8:30:17 PM PST by PGalt
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To: ClearCase_guy

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.


26 posted on 11/14/2012 9:05:03 PM PST by entropy12 (3 new SCOTUS appointments by Obama will ensure killing of unborn for next 30 years)
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To: MtnClimber

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.


27 posted on 11/15/2012 3:21:57 AM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: NormsRevenge

28 posted on 11/15/2012 3:54:12 AM PST by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: Bon mots

Blacks are still slaves...just a different master holding the chains.


29 posted on 11/15/2012 4:06:27 AM PST by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: Alberta's Child
Cancel your cable or satellite television and live your life as a free man.

They should, but they won't. They are addicted. There is always some 'excuse'.

30 posted on 11/15/2012 4:09:05 AM PST by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: Orangedog

“fueled by cheap money from the fed.”

And it isn’t going to end any time soon.


31 posted on 11/15/2012 5:10:02 AM PST by WILLIALAL
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