Posted on 06/02/2013 10:55:04 AM PDT by Lorianne
As Barron's notes in this recent interview, Marc Faber view the world with a skeptical eye, and never hesitates to speak his mind when things don't look quite right. Faber explains, among other things, the fallacy of the Fed's help "the problem is the money doesn't flow into the system evenly, how with money-printing "the majority loses, and the minority wins," and how, thanks to the further misallocation of capital, "people with assets are all doomed, because prices are grossly inflated globally for stocks and bonds." Excerpted from Barron's:
On the error of the Fed's ways:
The Fed has been flooding the system with money. The problem is the money doesn't flow into the system evenly. It doesn't increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market - things like stocks, bonds, art, wine, jewelry, and luxury real estate.
Money-printing boosts the economy of the people closest to the money flow. But it doesn't help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.
...
The neo-Keynesians would argue that if the Fed hadn't flooded the system with money, things would have been much worse. That might be true, but they would have been worse for a shorter period of time.
(Excerpt) Read more at zerohedge.com ...
I’m perfectly safe, then...
Hey! That wood burner does not look environmentally friendly. Is that EPA approved?
What he fails to note is that easy credit and low credit rates distort the market and have the same effect as printed money.
Actually, it is exempt according to the boilerplate.
I’ve got my money in metals. Copper, brass, and lead mostly.
Is he related to Mr. Richard Faber?
So you’re OK if you have no financial assets?
“People are doomed”
Fixed.
That beautiful, what is it?
“Is he related to Mr. Richard Faber? “
Emile Faber beloved founder of Faber College.
“Knowledge is Good”.
No, not stupid but unlearned. He's pretty famous and known as Dr. Doom. Pretty good at predicting macroeconomic trends. I read the financial pages about everyday is why I know him. I do listen to him because of his track record.
Most financial predictions are not going to come true.
"We are making money because we are smarter than the average human being and we are so....savvy! What else could be the answer to our success in the market?"
We moved into a rural area and first thing we did on moving in was to cut the heater thermostat cables.....running on wood heat these last few winters with no problems....but a combined wood heater/stove would be great.
Regards
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