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Marc Faber Is Shocked By How Many Ferraris And Bentleys He Sees In Newport Beach During His Smoke Break
Yesterday Marc Faber first made a guest appearance at the Ira Sohn conference, warning his audience to prepare for war, then promptly shifted to Bloomberg's offices where he discussed his outlook primarily on China, but also on the US, with Carol Massar, once again warning about war. As usual, he did not mince his words, warning of a "recession", and predicting that China is simply not growing fast enough in real terms. Nothing new. He did however branch out into the topic of class divergence in both emerging and developed economies: "in front of far too many luxury hotels there are far too many Ferraris, Maseratis, Bentleys... I see a boom everywhere, except for the working class, except for the lower, middle class. But among the well to do people the wealth that is floating around and the prices you pay for high end properties is incredible, and I think that will come to an end, and a lot of people will lose a lot of money... I was in La Jolla, Laguna Beach, Newport Beach, I was in front of a restaurant smoking and I've never seen so many Ferraris, Maseratis, Bentleys and fancy cars anywhere in the world, and this is in America. I am not saying this is wrong, but there is an opulence among a small group of people that is huge when there are lots of people that are struggling. This gives me a bad feeling because I've seen so many emerging economies when they were booming, that was the time to get out." As for the US economy, Faber agrees that the only thing that can help is a massive crisis (or "conflagration" as David Stockman calls it) that jars America out of its hypnotic state. And, sure enough, it will come.
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I live in L.A. and I've seen it first hand.
Faber was most likely smoking outside the Starbucks on PCH at Crystal Cove between Newport Beach and Laguna.
Every Saturday morning, all the local hedge fund managers, PIMCO executives, plastic surgeons, sports agents, and entertainment attorneys converge with their "supercars" to show off in the Crystal Cove parking lot. Its is just like a Barrett-Jackson auction scene.
And I can also confirm Azwethinkweiz's observations.
I was just in Westlake Village two weeks ago, and I've never seen so many "supercars" and beautiful women ever. It puts Manhattan Beach and Newport Beach to shame.
Never before has there been so many who have made so much money, so fast.
I deal daily with guys who approach my bank, seeking bank lines in the millions to invest in property flipping schemes, distressed debt, you name it.
And these guys come to the table with huge financial statements, with excess liquidity abound, and they can raise millions within hours with a few phone calls.
And speaking of Newport Beach/Irvine area, I saw three syndicated loan deals go through our credit committee which were interest-only loans in the billions of dollars, priced at LIBOR + 175. And the agent banks arranging these syndications give banks like ours 48 hours notice to approve our participation interests, otherwise we are out of the game.
Most of the borrowing companies are the usual and normal high tech companies headquartered in Orange County and traded on NASDAQ. The engineers of those companies are also killing it, and driving luxury item sales into Outer Space.
In 5 years, we will look back a this time as one of the greatest consumer spending booms on record, no doubt.
"I deal daily with guys who approach my bank ..."
this has to be the most bizarre post you've ever made, and you've made some real doozies. this post is filled with inaccuracies, too many to rebut. regardless, i'm beginning to believe you're a paid provocateur by a third party. either that or you are a hopeless, pathetic, lying walter mitty with too much time on your hands. given the number of posts you make daily at zh there is no way you put in an honest days work. something is fishy.
+1 lieutenant
I think he posted that accidentally under Robot Trader instead of under whatever his other account name(s) is(are).
lol.
The square you're referring to is a "smoke free environment", much to my chagrin.
Why do you lie so much?
Half the people driving those people are living in $5M houses and have not made a house payment in two years but they keep the car loan current... why not... no one is foreclosing on them. wheeeyaaaaa
If the Hong Kong property market stalls and all that excess liquidity starts flying into Chinese stocks......
Well Faber is going to have egg on his face.
Just look at how RE collapsed here and stocks took off.
I like my M3 and my pickup truck, but I get more looks and comments when I'm in my 65 Chev Caprice 4-dr hardtop with a 396.
smoke break?
...thought he wanted to stick around to see how this mess plays out...
Faber is quite the character, but he plays to the crowd a bit. I've seen him plenty of times in Hong Kong, where his wife has a Thai restaurant on Hollywood Road. Stand on a street corner in Central, or near the entrance road to Red Hill, and the display of supercars beats just about anywhere, except that with Hong Kong's tax, double the price of every one of them. Many are parked in front of $10-20 million homes, though some fill the garages at $50-80 million homes. Not all of HK's 7 million folks live so well. Across the ever-narrowing harbor in Kowloon, old men still live in cages.
One example of what the elite can get...the HK government continually auctions off property it owns, usually to the same five or six buyers. Prices are among the world's highest. In 1997 Li Kai Shing, the territory's richest man, won an auction for a large piece of land. Shortly thereafter the market collapsed as the Asian Financial Crisis hit. He appealed to the government for a rebate, even though he had acquired the land in a fair auction. He got the rebate. Even then his net worth was $10 billion, so it wasn't as if he was going to go hungry without the rebate. It's no wonder he is a firm believer in a very slow path to full democracy in the SAR. The people "aren't ready for full democracy yet", he says.
I wonder how Faber gets around...bicycle? mo-ped? rickshaw?
http://i56.tinypic.com/2yl1zf8.jpg
Cripes. How do they do it? Why aren't the regular people there stomping these assholes into the dirt? Are Asians even more beat down pushovers than Americans are? The ChiComs have the biggest racket going on the face of the earth. Over a billion people, mostly living in poverty, while a few oligarchs have slaves polishing their gold doorknobs.
China sending oil to 100+ again, bidding EUR/EU assets and NZ assets.
God they are clueless.
China central planning going global...doomsday trade locked in.
Pretty blatant stop hunt if you ask me, ahead of the long weekend and lots of little guys getting in early on the end of QE2 trade.
If the QE3 really was on gold would be moving, but its not.
qe3 rumors
Farber is exaggerating it.
To be fair, there are more "Ferraris, Maseratis, Bentleys and fancy cars" in Monter Carlo than in Laguna Beach or Newport Beach.
Also, I saw many "Ferraris, Maseratis, Bentleys and fancy cars" in Farber's hometown Zürich (a lot of die Schweiz banksters driving "fancy" cars in Zürich)
The divide is the one that causes revolutions. If you read history you can possibly understand.
Civil War - http://www.youtube.com/watch?v=E9VhD4SccSE
Look at your young men fighting
Look at your women crying
Look at your young men dying
The way they've always done before
Look at the hate we're breeding
Look at the fear we're feeding
Look at the lives we're leading
The way we've always done before
... And the wars go on with brainwashed pride
Your power hungry sellin' soldiers
In a human grocery store
My hands are tied
For all I've seen has changed my mind
But still the wars go on as the years go by
With no love of God or human rights
'Cause all these dreams are swept aside
By bloody hands of the hypnotized
Who carry the cross of homicide
And history bears the scars of our civil wars
Civil War - Feeds the rich, while it buries the poor...that's what this post reminded me of...and this song popped in my head.
This is nothing new. The rich in the 30s depression were splurging on huge extravagant parties, private rail wagons and private yachts while the poor were hungry and homeless. All this has happened before and is absolutely nothing new.
I love it China + Qe3 rumors sent everything bid. We are so doomed
I can't believe that someone as intelligent as Faber actually smokes!
I didn't read all the comments. So Faber visits PIMCO-land is surprised to see fleets of nice cars? Those guys are just following his advice and selling / shorting Treasuries. Do you resent their success?
to make it glaringly obvious:
why resent "the rich's excesses"..
the wealthy 's public exhibit of opulence = values that are not those approved of by many on ZH ..at the same time irony is: many here state how wealthy they will become with investments made for the coming collapse ..
I am willing to bet that many of these people are wealthy Mexicans who although still owning their business in that country they have moved with their families to the US. There is an immigration law that if an immigrant has x amount of dollars they can residence status as long as they invest in the US. The reason for this is that they are targets of crime in Mexico from kidnappings. They buy those cars which they could not drive in Mexico thus becoming a target. I have frinds in San Diego that know some of thiese individuals. Mexicans with money are leaving Mexico in droves to the US and other countries.
He should nicotine patch it, we need him around, not connected to an oxygen tank with cut off fingers.
Nasdaq in a great place for a sell entry
http://deadcatbouncing.blogspot.com/
Income inequality is exploding everywhere. Marx is grinning in his grave. Mr. Faber should cut off that silly pony tail. Yuck!
Income inequality has been with us since the beginning. Remember, Jesus Himself said, "The poor you will always have with you." It is simply a fact of life. Some people are born to advantage, whether of family wealth, personal talent, a driven spirit. . . some are not. The poor in America enjoy vast wealth compared to the poor in Delhi.
And, in any case, it is none of the Government's business how wealthy a man is. If you believe otherwise, you are a Statist with no concept of genuine liberty.
Newport Beach is where PIMCO is located and where bill gross lives. It is one of the wealthiest cities in America. Laguna Beach is just as wealthy. The monetization of debt is creating bubbles and the people of Newport and Laguna certainly have the means and will to capitalize on the current economic environment. Newport and Laguna are not great places to get anecdotal evidence about Americans in general.
Faber is the man. Love the p-tail.
I also take care of 3 people on 50k and I'm not saving a damned thing. I'm lucky I can buy the supplies my daughter needs for the 3rd rate public school she attends. You must live in an area with a very low cost of living, or perhaps you have a garden in your basement.
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