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Marc Faber - There Will Be Nowhere to Hide from the Next Crisis

March 27, 2013 | About:
CanadianValue

CanadianValue

210 followers
Faber does not think the U.S. market is going to go up from here; rather, he sees significant downside risk.

He thinks the European crisis is going to impact corporate profits in the U.S. because 40% of corporate profits come from overseas.

Faber was asked why gold isn't performing better in such an "easy-money" world. His explanation is that the money does not flow evenly; he thinks a lot of that cash has gone into equities.

Faber's main concern is that the easy money world is setting us up for a global crisis from which there will be no asset class to hide in, including gold.



About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.5/5 (6 votes)

Comments

traderatwork
Traderatwork - 1 year ago
"No FDIC"

"The savers should know which bank is safe"

This guy is not really saying that right?
shaved_head_and_balls
Shaved_head_and_balls - 1 year ago
He hasn't been short any US stocks since 2009?? Do a Google search of "Faber short Salesforce.com" to see how accurate that statement is.
batbeer2
Batbeer2 premium member - 1 year ago
>> This guy is not really saying that right?


He does have a point.

Here's the plan of some smart-ass Russians/Brits/Greeks in 2010/2011/2012:

1) Get some money to a bank in Cyprus. Open a non-resident account and park 75k there. If you have more, open multiple accounts.



2) Collect 6% interest (as opposed to 1.5-3% in Germany, Belgium, Holland or Finland).

http://cyprusbank.org.ua/index/0-8

At some point, the bank may fail (the debt of those banks is about 8x GDP) and they have a significant book of bad loans.

3)Once they fail, the EU guarantees you'll get your money back. The bank may close for a few weeks but at some point you will be able to collect the cash. Including 20%-30% of compound interest if you caught on soon enough.

The root cause of the problem is that the EU guarantees the loans but has no control over the banks..... until they fail. It's the national governments that are responsible for their banks. But once the banks fail, local politicians will make a lot of noise if the EU has the gall to attach any conditions to a bailout.

From where I sit, it seems I'm paying for all this while my local bank (ING) pays me 2% interest..... for once I agree with Faber.

If this story gets out in the mainstream media in Germany/Holland/Austria/Finland there will be hell to pay.

Slovenia and Malta are next.

http://www.reuters.com/article/2012/07/26/us-slovenia-banks-idUSBRE86P0A520120726

The unlimited guarantee by the EU of any bank in the Eurozone must end or we will be on this treadmill forever. Cyprus has been handled different than Greece. We are learning, this will stop.

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