Thursday, November 08, 2012

Video: Marc Faber Says President Obama is a Disaster for the US, Recommends Buying Machine Guns

In the following Bloomberg interview Dr. Marc Faber rants on Obama's re-election which comes with several interesting insights

My notes from his interview

-Obama is a disaster but less bad for the world than Romney. Both deserve to lose

 -Markets will drop by at least 20% in 6-9 months, may drop 50%

-Obama's regime: more regulations, higher taxes

-Bernanke's money printing led to high corporate earnings but has been coming down 

-Global slowdown may counter the effect of money printing [For me, global central banks are doing the same as Bernanke's Fed, so these would have consequences to the markets and the economy, which ensures volatility but not necessarily an asset slump]

-It is difficult to tell where the markets will go because of so much manipulation

-Congress will solve Fiscal Cliff standoff with Obama by cosmetically raising taxes and cutting spending which will be backloaded 10 years.

-trading year end rally until January before selling pressure.

-GDP is not a very relevant figure

-Dr. Faber also cites of the entitlement mentality of the markets where a decline of 2% is seen as a big deal when markets have had a "huge bull market" over the past decades    

-China's economy is growing a maximum 4% at present time

-Asia not in a recession but off the peak of business activities from nine month ago. 

-Dr. Faber jokingly recommends buying guns and machine guns, he quips of his need to buy a tank.

-Whenever you manipulate the market you willget unintended consequences

-The re-election of Mr. Obama is an unintended consequence is an unintended consequence from money printing. [For me, money printing was a political strategy by Bernanke in to the political goals of Obama, thus was hardly an unintended effect]

-Mr. Bernanke enabled the "wealthy fat cats" profiteers [which Democrats used effectively as part of their political campaign]

-Dr. Faber doubts if Mr. Obama stay at the presidency for the another four years as in "there will be many scandals".

-standards of living in the western world will continue to decline because of the cost of living increase will exceed income gains, cost of living will also go up because of all types of taxes will be increased 

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