The First Worldwide Bubble in Everything
Found at bi-me.com
Marc Faber the Swiss fund manager and Gloom Boom & Doom editor said the US Federal Reserve managed, through stimulus, to do something that had never before been done – create a worldwide bubble in just about everything -stocks, bonds , housing and art.
The only thing that didn’t go up was the dollar, according to Faber.
Speaking to the 10th Annual Agora Financial Investment Symposium in Vancouver this week, Faber said: “You cannot create prosperity through money printing and debt growth.”
Faber preached an idea that became the theme of the event: Government fiscal and monetary intervention, “can postpone, but not prevent crisis.
“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber said.
So what’s this mean for the market? “The S&P 500 will not recover to 2007 highs. At the peak, 44% of the S&P was the financial sector. That is gone… not coming back.”
“In the period, 2001 -2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing – you name it; it went up. The only thing that didn’t go up was the dollar,” Faber said.
All this was achieved through stimulus, Faber said.
Related posts:
- Get Out of Bonds Now Before the Bubble Bursts
- How Urban Planners Caused the Housing Bubble
- Danger Signs Ahead But Bargain Stocks A-Plenty: Faber
- Feds Trying To Reflate Bubble
- The Calm Before the Financial Storm?
