Marc Faber Believes There Still is Tremendous Downside Momentum in the Global Economy

By on February 7, 2009

Marc Faber was featured in a couple of videos at CNBC yesterday. In his classic fashion, Faber does not believe the policies of the U. S. fed will result in a favorable outcome. Faber is quoted, “We have the Austrian school — the school of rational expectations, monetary schools. And in the U.S., we have a totally new school, and it’s called the Zimbabwae school. And it’s founded by one of the great leaders of this world, Mr. Robert Mugabe. He has managed to totally impoverish his own country. And that is the monetary policy the U.S. is pursuing. If something is going wrong, print. If it doesn’t get fixed print more. If it then goes even worse, print more.”

In spite of his negative views on the economy, Faber believes stock prices worldwide could see a 30% rise from current levels simply because there has been such a severe crash in prices. Faber feels commodity prices, which have performed even worse than equities, could also rebound for a time.


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