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Marc Faber warns of asset market corrections

See this Bloomberg News video segment of Dr. Marc Faber giving a big picture overview of the US and world economy.

Within the first few minutes, Faber takes the viewers and program anchor to school on a multitude of economic/financial issues.

His response to the anchor's assertion that the Fed has done very well in keeping money and liquidity tight and curtailing the easy money policies of the past:

"Well, I think that the Fed, since June 2004, has increased the Fed Funds rate from 1 percent to 5.25 percent. But money hasn't been tight, because the definition of tight money is that credit/debt...credit market volume, or the debt growth, slows down considerably. That is tight money.

And believe me, when you have tight money the art market doesn't go up by 27 percent like in the US last year. And you don't see new highs in stocks, and you don't see new highs in asset markets like commodities and real estate..."

Don't miss this.

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