Skip to main content

Marc Faber on CNBC

We're going to start off this week with a recent clip of Marc Faber on CNBC (Thanks to reader Domenico for the heads up on this video).

You'll hear everything straight from Marc for yourself, but let me just briefly outlilne some of the main points he made to CNBC in this interview from last week.

1. Investors should stop listening to the Fed. They are misleading the people with claims of strong dollar policies and their worry over inflation. Their actions have shown the opposite to be true (the Fed is not really concerned about inflation), and ordinary Americans have suffered from the central bank's inflationary policies.

Also, Marc notes again that the Fed is trying to pump the financial system full of liquidity, while the private sector is trying to tighten lending standards and credit conditions. For now, the private sector is winning.

2. The Federal Reserve should have let investment banks fail. As Marc says, "If I'm a bad businessman, who's going to help me?". He feels bailouts are a very questionable practice, especially in the case of the recent Bear Stearns buyout, where a once-prosperous and well-connected bank is bailed out/purchased with taxpayer money.

He also feels that many banks are essentially bankrupt, and that the financial sector is in worse shape than the investment community perceives.

3. Faber feels that oil and commodities may correct to the downside in the second half of the year. He has lately seen a noticeable slowdown in business across the globe, and says the slowdown will affect demand for commodities in China, India, and elsewhere.

While he notes that the commodities bull run may still be intact for years to come, Marc would rather buy gold than oil, as higher gold prices will be supported through continued money printing from the world's central banks.

We'll have more on the historical inflation theme as the week develops. Tune in for these upcoming posts. Until then, enjoy the clip!

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…