Tuesday, September 22, 2009

Marc Faber Loses touch with reality

This is an extremely flawed diagnosis of the situation and surprising coming from Faber. Its interesting that the blowoff that the dollar may get here may make it look like equities are the place to be...but there is little support for that condition to continue beyond the targets I have discussed on the indexes.

To reiterate, Mr. Faber. Your thesis that the dollar will go into the tank is a credit-inflation manifestation and we are not suffering from credit induced inflation. That condition should have been identified 3 years ago. The dollar is already in the tank - its down over 97% since the Fed took over managing inflation and protecting the dollar. But isn't it ironic, people are sure the dollar will go in the tank when it only has a few percent to go to get to zero and is relatively worthless alreadyI am sorry to inform Mr. Faber (and Mr. Buffett) - the dollar is already worthless and maybe it wants to go up for a few years.

Please read my posts regarding the dollar, derivatives and money generation to understand the delusional views that Faber discusses. There little chance that his scenario could playout. With interest rates so low and no on borrowing...how is global liquidity going to expand? He's really out of touch!

Warren Buffett espouses some of the same prognositcations as Faber...and even states that the worst investment you could have made in the last 8 years was treasuries or cash. When in fact that is completely false and inaccurate. see: Warren Buffett - a bull-market manifestation

Also see:
Derivatives...what the heck were they for?The EURO - starting a trip to oblivionMore dollar what-if discussionThe Dollar - biggest short squeeze EverAll we need is a hit to theoretical money

© 2009 m3, ltd. All rights reserved.