Thursday 17 January 2008

Mr Gloom Boom Doom's views on bubbles

Marc Faber is one of the most miserable, curmudgeonly market analysts in the world. He publishes the Gloom, Boom & Doom report, which has a strong track record at predicting downturns.

It's interesting to look back a year and review what his thoughts were.

In this discussion on bubbles he points out that credit expansion is potentially a problem...which the sub prime mortgage situation proves.

My view is that the Fed will probably reduce interest rates by 0.75% and that will prop up failing loan providers for a while. I expect there to be a market correction of about 20% and that the US dollar will weaken by about that amount also over the next couple of years.

Part 1



Part 2



(Nothing Follows)

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