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Big bear and managing director and editor of the Gloom Boom and Doom report was on CNBC reacting to the start of QE3.
-- He thinks expansionary monetary policy of Alan Greenspan and Ben Bernanke has created a mess of the U.S. economy.
-- Housing bubble was caused by expansionary policy of Fed and led to the worst financial crisis.
-- Consumption has never led the economy out of recession; it is always capital spending.
-- He said if he was Ben Bernanke he would have resigned by now.
-- If he really wants to help households and the man on the street he should send a check of $5 million to each household and put that on U.S. balance sheet rather than QE3.
-- He said, "Quantitative easing helps the Mayfair economy, the economy of rich people whose net worth increases. The money doesn't flow to the man on the street."
Credit and Source: CNBC, www.cnbc
Here is the video:
Marc Faber - Ben Bernanke Should Resign
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I've been a fan of Faber for many years, but the unfortunate reality is that his perpetual doom and gloom predictions of the sky falling just has not yet come to be. AFAIK Faber is not an economist or even a "mainstream" investor, so IMO his opinions should be taken with a grain of salt.
He appears to be a trader, looking to profit from short term inefficiencies and fluctuations in the markets, and probably doesn't even care about the effects of inflation, deflation, deficit spending, regulation, trade protectionism, currency fluctuations, interest rate fluctuations or whatever he whines about, as long as he has the opportunity to profit from the volatility. Of course it doesn't hurt him if he gets widespread publicity in widely distributed forums like CNBC, where he in effect pours gasoline onto the fire so that he might get another trading profit.
I've been following his predictions presented in the regular Barron's "Round Table Forum" for years, and AFAIK those predictions have not been especially prescient. IMO he is another example, like many of the so called investment gurus, of an apparently successful investor whose opinions about investment strategies and outcomes are impossible for us regular folk to follow into the trades.
Of course that old cliche "even a broken clock is right twice a day" may apply here and Faber could someday find his place in the sun as one of the best prognosticators of the meltdown of the world wide economy.