Marc Faber, "Money Pumping Will Lead to a Very Strong Rally"

By on November 22, 2008

Yesterday, on CNBC, Marc Faber was interviewed and believed there would be a very strong three month rally in equities because of government intervention. Faber also felt that the vast pumping of money into the financial system would eventually lead to a selloff in bonds and the U. S. dollar.

Mr. Faber noted that investor’s equity assets have declined by $30 trillion globally, and when you add in residential real estate, commercial real estate, and businesses it could be as high as $100 trillion. He added that if the markets don’t respond to the government’s massive stimulus efforts we will experience a situation worse than the 1929 – 1932 depression.

Mr. Faber considered gold mining shares to be very cheap, although he was hestitant about making a prediction of a major rally in the metal itself.

Source:

http://www.cnbc.com/id/15840232/?video=935450306&play=1
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