Investing guru, the publisher of Gloom Boom and Doom Report, Dr. Marc Faber has a great analogy for the proposed EU banking fix
Dr. Faber as quoted by LewRockwell.com
Yet the common recourse for politicians and media has been to engage in verbal manipulation, particularly the appeal to the popular, in the hope that confidence may be brought back without the required reforms.
More from Dr. Faber
Dr. Faber as quoted by LewRockwell.com
If you put one or 100 sick banks in a union, it does not change the fact that they're sick. In my view the markets are rallying because they were grossly oversold. When markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher. Their cosmetic fix basically forces Germans to continue to finance people in Spain and Portugal and Greece that are living beyond their means.Indeed a foolish thing is a foolish thing. Numbers don't change the essence of the problem.
Yet the common recourse for politicians and media has been to engage in verbal manipulation, particularly the appeal to the popular, in the hope that confidence may be brought back without the required reforms.
More from Dr. Faber
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