Marc Faber, U.S. economy "bear" and author of the recently infamous "Gloom, Boom and Doom Report", speaks his mind about the prospects for growth, debt and war in the world over the next 10 years. In the interview he actually endorses stocks as a reasonable investment in the near term, due to obsessive spending by the U.S. government to prop up the U.S. economy. He makes an interesting comparison between businesses and households which over spend and which save, as a metaphor for the consuming U.S. and developing China.
We have seen a rational retrenchment by U.S. consumers over the past twelve months and credit to consumers continues to decline. While the government has spent an enormous amount of capital to aid the citizen's hand into his back pocket, this bubble of government endorsed spending may be the last before true reconciliation.
Enjoy these speaking points and more in the simplistically wise words of one of the grizzliest "perma-bears" out there, Mark Faber...
Marc Faber, Indian TV Interview Part 1/3
