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"Greece Is Coming To Your Neighborhood" Marc Faber Warns

Tyler Durden's picture




 

"Wake up people of the world and investors. Greece will come to your neighborhood very soon, maybe not this year, but next year or whenever it is, because the world is over infected. And defaults will follow, or they will have to create very high inflation rates."

That's Marc Faber's message to all of those who may still think that Greece doesn't matter in the grand scheme of things. In an interview with Bloomberg TV, Faber talks Greece, China, and of course the Fed.

On Greece:

And everybody knows in the world that Greece cannot pay its debt at the current size. So what will happen, in my view, is either Greece will leave the EU and will suffer very badly for a few months, maybe even longer. There will be a cash shortage. Or the EU, and the ECB and the IMF will have to cut a significant haircut. And Tsipras proposed a haircut of something like 30 percent. I don't think that's enough. I think they will need a haircut of at least 50 percent.

 

I think the likelihood of contagion is very high. And I have to say when you have a borrower, you also have a lender. And it's actually, in my view, amazing how the EU kept on pumping money into Greece, partly also to bail out their own banks. And suddenly now the debt is no longer manageable.

 

And I would say, wake up people of the world and investors. Greece will come to your neighborhood very soon, maybe not this year, but next year or whenever it is, because the world is over infected. And defaults will follow, or they will have to create very high inflation rates. 

On China:

Well my view was that after this 100 percent increase in Chinese stocks and huge speculation, and huge speculation on margin, margin index in China, the percent of the economy, was almost twice as large as in the U.S. So it was very large. And my view was that the market would fall from the peak by at least 40 percent.

 

And I still maintain that -- that the market will move lower before it starts to move up again. But I don't think we'll see a new high in China for some time.

 

I think the economy is very weak by Chinese growth standards. And we've seen that also in industrial commodity prices. I think lots of sectors in China are no longer growing. 

On 'liftoff':

Well, as you know, the majority of Fed's governors that are voting are those that always they will use any excuse to essentially delay a rate increase. 

Full interview:

 

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Mon, 07/06/2015 - 17:34 | 6277865 order66
order66's picture

Greece is already in mine. Gyro shop just opened up.

Mon, 07/06/2015 - 17:38 | 6277877 El Oregonian
El Oregonian's picture

The Banksters are in the 'hood!

Mon, 07/06/2015 - 17:42 | 6277894 booboo
booboo's picture

Well there goes the neighborhood

Mon, 07/06/2015 - 17:45 | 6277901 nuubee
nuubee's picture

Aaaaand its gone...

Mon, 07/06/2015 - 17:54 | 6277927 Antifaschistische
Antifaschistische's picture

"I think they will need a haircut of at least 50 percent."

I'm a simple antifaschist.  I do simple math.  If Greece hasn't actually paid off a single debt in the past 7 years, but only received additional credit...to pay off old credit cards...then, how does a 50% haircut work?

I did the simple math...and to make their July payments they would have to come up with 200,000,000 (yes, that's 200 million Euro's) PER/DAY in July.  So...if they only had to come up with 100,000,000 is that feasible?  I don't see that math working out either.

a 50% haircut means - 50% debt reduction, and give me another credit card to make smaller payments...and restart my debt bomb clock again....just buy me X years before the next meltdown.

Does Greece need a reset?  Of course...do they need to be saddled with a 35 billion Euro debt (i.e. 90% haircut)?  Absolutely not!

Greece needs to punch through wormhole...wipe off the liabilities on their B/S...start over

Mon, 07/06/2015 - 18:12 | 6277958 InsanityIsWinning
InsanityIsWinning's picture

Of course you are correct but it has never been about fixing the problem when everone knows what the fix is. The debt (and ours in the US) cannot be paid back.  So it's about debt forgiveness and a whole 'new deal' when the reset button is push . . . but NOT ON THEIR WATCH. . . kick the road down the can (yoggie-est)

Mon, 07/06/2015 - 20:45 | 6278442 bobdog54
bobdog54's picture

Hah, and there in lies the root problem, more and more people think THEIR problem is really somebody else's or at least it should be!!! 

Hell, let's all just start over, nobody owes nobody nuthin'!

I'm an anti-bailer (in all things) - everyone needs to live with their decisions and in Greece's case today and eventually ours in the USA, we will find out that there is indeed something quite worse than the horrible austerity of living within one's means.

The world is so much denser than the geologists tell us....

Mon, 07/06/2015 - 17:38 | 6277881 Four chan
Four chan's picture

i live IN detroit.

Mon, 07/06/2015 - 17:41 | 6277890 somecallmetimmah
somecallmetimmah's picture

Looks more Iike CLEAVE-land, sister!

Ba-dump-bump!

Mon, 07/06/2015 - 18:00 | 6277942 JBilyj
JBilyj's picture

FUCK OFF!

Sincerely,

from the #CLE

Mon, 07/06/2015 - 18:40 | 6278047 knukles
knukles's picture

I love it when a good Gyro comes together.

Mon, 07/06/2015 - 17:42 | 6277873 q99x2
q99x2's picture

The coinbase.com bitcoion exchange seems to be Gox'd today. Thought Greece might have broke it but it is isolated to various areas not being able to connect. I can VPN in.

Mon, 07/06/2015 - 18:53 | 6278084 indygo55
indygo55's picture

" I can VPN in."

Yeah thats cool. That why bitcoin and the other crypto currencies freak me out. I have some bitcoins I bought a few years ago for like $50 each but when there is a disruption in the complex system, I'm not gonna VPN in to use them. 


Mon, 07/06/2015 - 19:59 | 6278303 q99x2
q99x2's picture

I just had to come onto their network from another part of the internet not a direct VPN to them.

Mon, 07/06/2015 - 17:44 | 6277874 Ham-bone
Ham-bone's picture

Greece (very representative of much of the EU) & Puerto Rico are the leading edge of the demographic and population winter we are entering...but check the engines of growth, China, Brazil, and soon India will also be facing negative birth rates. 

As population growth slows, as credit growth slows, interest rates alreaddy at ZIRP...the only things left are government debt, more CB leverage, and derivatives beyond belief.  These are filling the void...but an inflection point is likely here and going to hit us sometime in '15.

http://econimica.blogspot.com/2015/07/global-us-population-growth-and.html

Even noteworthy is the fact that within the US, the NE and Mid-West are in big demographic and population troubles...and all growth is in the S and W.  This dicotomy seems to be driving bubbles in areas of actual growth to maintain areas facing decline (not unlike dicotomy of Germany vs. Spain in last bubble).

http://econimica.blogspot.com/2015/06/us-population-and-housinga-tale-of-two.html

Mon, 07/06/2015 - 17:50 | 6277918 somecallmetimmah
somecallmetimmah's picture

Greece: a ready pool of illiterate slaves to build my new empire.

Mon, 07/06/2015 - 18:46 | 6278060 Meremortal
Meremortal's picture

US is in demographic trouble, which will not look better until about 2022-25. That's why I keep talking about 8-10 years to go before the economy will really wake up. China just going into its problem, which will last a while. Japan about to come out the worst of its demo problem.

As for the US, people are fleeing the urban liberal strongholds which are falling apart and too expensive tax-wise. They are moving to more conservative areas where they will vote for the same stupidity that caused them to leave where they were. 

Mon, 07/06/2015 - 19:30 | 6278211 BarkingCat
BarkingCat's picture

Exactly!!! These assholes are like locust. They consume their environment to the point of collapse and move on. Never learning from the past.
It is how the Massachusetts infestation is now ruining New Hampshire.

Tue, 07/07/2015 - 10:01 | 6279952 Raging Debate
Raging Debate's picture

Barking Cat - I moved to Florida because of this and I used to love NH. I was born and raised there. The female radical left was rejected even in MA.
So they came to NH and by 1998 the legislature was over 50% of feminazis.

There was a debate how to raise revenue, a state income tax was considered. What was chosen was the worst ways to raise revenue. A police state that focused on family law and woman's discrimination. Such arm predators. I estimate I spent at least $100,000 in direct and indirect legal costs and I am about the most honorable people you will meet.

The sad joke in NH is if you have a penis, your getting a tax. I have no beef with female legislators in general, I have a lot of respect for Snow and Collins in Maine where I moved over the border in 2005. I voted with my feet.

In 2011 when NH went bankrupt, they sent me a $7k bill for three people on unemployment going back to 2007. When I demanded a hearing, that I would bring up every UI payment receipt and my attorney they wiretapped the funds right out of my bank account. That was it. I moved the business to Florida which is far more business friendly. It isn't perfect but a much better business environment.

If you live up north, have a micro business with no employees and a stable wife NH can be wonderful. The While Mountains are beautiful. My heart misses them but I have many trauma scars from the tax/theft politics I will never forget.

Maine is far more politically sane right now. I really liked living there. Some of you may have seen a national survey of the most stressed out states to live in and the least. Maine was the least.

Mon, 07/06/2015 - 17:46 | 6277883 somecallmetimmah
somecallmetimmah's picture

The doom. Faber gotz it.

Mon, 07/06/2015 - 17:48 | 6277907 JenkinsLane
JenkinsLane's picture

Not living in Chiang Mai he ain't; the entire Western financial system could

collapse overnight and he'd still be golden.

Mon, 07/06/2015 - 18:15 | 6277966 Son of Loki
Son of Loki's picture

He is so cool. He is definitely "The Man!"

 

 

Putin is a close second.

Mon, 07/06/2015 - 18:42 | 6278052 knukles
knukles's picture

Faber is so cool he air-conditions the room he's in.

Mon, 07/06/2015 - 18:53 | 6278088 tdogg
tdogg's picture

Wait.  Let me grab my Tomintoul 21 yr scotch before listening to this fine sir.

Awwwhh there she is - such a gentle dram.

Now go ahead Mark - hit me!

 

 

Tue, 07/07/2015 - 00:04 | 6278979 roddy6667
roddy6667's picture

When I visit Chiang Mai next year, I think I will go to his wife's restaurant. Maybe he will be there and I can buy him a drink. maybe I'll buy a place and stay there.

Mon, 07/06/2015 - 17:40 | 6277887 Colonel Klink
Colonel Klink's picture

Yep, the world is infected with tribal bankers which need to be eliminated like before.  Problem was they missed the big ones, and a lot of innocents suffered.

Mon, 07/06/2015 - 17:42 | 6277896 somecallmetimmah
somecallmetimmah's picture

Have you an arbeitslager prepared for them, Colonel?

Mon, 07/06/2015 - 17:45 | 6277898 Colonel Klink
Colonel Klink's picture

Nope, those I'm referring to don't deserve to suck the same air as hardworking, decent people.  Straight to the showers for them.  Also those I'm referring to don't understand labor, they skim from the labor of others or steal outright.

Tue, 07/07/2015 - 00:09 | 6278992 roddy6667
roddy6667's picture

I've been living in China for a couple of years now, and it's so refreshing to not have Jews running banking and the media. I have never seen one here. They can't change their name from Kohn to Kerry and blend in with the natives.

Also, no blacks. Violent crime is almost unknown in my city.

Mon, 07/06/2015 - 17:45 | 6277904 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Greece is coming to your neighbourhood, Faber. Greece ain't coming to my neighbourhood, BuckO, quit projecting your 1%er insecurities off onto us.

Mon, 07/06/2015 - 17:48 | 6277911 somecallmetimmah
somecallmetimmah's picture

I sense cheap 'massages' coming to MY neighborhood, brother. With extra tzatsiki sauce.

Mon, 07/06/2015 - 17:53 | 6277926 Sages wife
Sages wife's picture

More likely MASTER BAITER.

Mon, 07/06/2015 - 18:27 | 6277994 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

downvotes?

 

oh, the horror, the horror.

Mon, 07/06/2015 - 17:50 | 6277916 Oldwood
Oldwood's picture

As always inflation and taxation are to be our saviors. Too bad we are the victims as well.

Mon, 07/06/2015 - 17:54 | 6277929 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Greece is the word
Greece is the word, is the word that you heard
It's got groove, it's got meaning
Greece is the time, is the place, is the nation
Greece is the way we are feeling…….

Mon, 07/06/2015 - 19:18 | 6278175 SilvertonguedAngel
SilvertonguedAngel's picture

If I watch CNBC i start to feel greecy...

Mon, 07/06/2015 - 17:55 | 6277932 Sudden Debt
Sudden Debt's picture

Bankers only?

How many people depend on fixed income funds? Sure banks take a piece but for a lot of people it’s income.

I now sold all my funds but I had over 30% of my income out of funds that yielded 13% and more a year for the last 8 years.

And where does that money come from? Very risky investments.

So let’s not confuse "evil bankers" by investments because the day you don’t see porches and expensive cars in the streets anymore, you should panick.

I like to be surrounded by rich people. That’s are oppertunity situations.

when you’re surrounded by poor people... you move out and only the suckers are left.

Mon, 07/06/2015 - 18:03 | 6277944 BandGap
BandGap's picture

Night and day the 4th festivities from last year to this. Some notable changes in UMC middle America from where I sat.

The FSA with the 3-4 wild kids and the tattoos are out in force this year. Locals stayed home in droves or found other places to celebrate.

It is getting scarier, that is for sure.

Mon, 07/06/2015 - 18:17 | 6277972 trader1
trader1's picture

why?

Mon, 07/06/2015 - 19:08 | 6278125 Lin S
Lin S's picture

...

Mon, 07/06/2015 - 19:08 | 6278141 Lin S
Lin S's picture

Wow. And here I thought I was the only one seeing this.

Mon, 07/06/2015 - 19:24 | 6278201 pupdog1
pupdog1's picture

I dreamed once of owning a porch, but these days it is just not in the cards.

Mon, 07/06/2015 - 18:34 | 6278019 Spectre
Spectre's picture

Who really gives a flying fuck anymore ?  We are all for the most part financially doomed, is it Greece that has started the dominoes or someone around the corner ?  In any event the USA probably implodes last, but it will be a real Bang!

Mon, 07/06/2015 - 18:40 | 6278046 Brutlstrudl
Brutlstrudl's picture

"The issue that has come down through the ages,and will have to be fought sooner or later, is the people versus the banks".  Lord Acton

Mon, 07/06/2015 - 18:48 | 6278068 bugs_
bugs_'s picture

Not if we close the borders.

Mon, 07/06/2015 - 19:30 | 6278214 Shad_ow
Shad_ow's picture

To little, too late.

Mon, 07/06/2015 - 18:49 | 6278076 Meremortal
Meremortal's picture

Community banks good.

Central banks bad.

 

Mon, 07/06/2015 - 19:19 | 6278179 SilvertonguedAngel
SilvertonguedAngel's picture

Bend over, let me Greece you up.

Mon, 07/06/2015 - 19:36 | 6278229 pain_and_soros
pain_and_soros's picture

So if I understand what is going on....

Greece just had a vote on whether to accept the creditor's (aka as the "institutions" aka "the troika" which is made up of the IMF, the ECB & the Eurogroup) terms of restructuing, not only re: their debt, but also their national institutions....pensions (which apparently exceed those in other smaller Euro countries who are being asked to bail out Greece), taxes (apparently only the poor pay taxes in Greece because the rich have friends in high places...), 

and based on the results of this demogogic, er, I mean democratic election, Greeks now expect these same creditors (who they've referred to as terrorists, Nazis, etc.) to continue to lend them money without making any changes to their corrupt institutions....

I think anyone with a brain knows that much, if not most of the Greek debt cant be repaid, the real issue is what are the terms & conditinos of any "new loans"....

And frankly, if I'm being asked to lend (more) money to Greece, I'm thinking long & hard...especially when I know that whatever I decide, I'll have Spain, Italy, Portugal, etc. coming with cap in hand, expecting a similar deal  & knowing my own debt situation is precarious at best....

I say, let Greece go it alone....and let everyone go it alone & see how things end up????  If war & hostility can be avoided, I have a pretty good idea who rules the roost in Europe (as before) & I suspect any honest Greek & other Mediteranean will know the answer too.

Oxi, oxi, all is free....lol

Mon, 07/06/2015 - 19:38 | 6278240 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

yes..but when it happesn in the USSA it's going to be a blood bath.

 

 

 

Mon, 07/06/2015 - 20:01 | 6278272 q99x2
q99x2's picture

Print until we are doomed.

Mon, 07/06/2015 - 19:50 | 6278279 teutonicate
teutonicate's picture

Readers of ZH beware.

The last thing that we need is advice from tribal middle management like Marc Faber telling us that the cabal is coming to our neighborhood.

Who do you think screwed the Greeks, the Easter Bunny?

Mon, 07/06/2015 - 20:01 | 6278299 TrustbutVerify
TrustbutVerify's picture

Are you saying the Greeks didn't screw themselves?  

Faber is suggesting that the mountains of debt everyone has run up will, and the various societies' addiction to it (decades of debt funded false prosperity) will, at some point, have to be dealt with.  And doing so won't be easy.  

Mon, 07/06/2015 - 20:18 | 6278320 teutonicate
teutonicate's picture

I agree that they contributed to the problem, just as Americans are contributing to the problem in their country through their indifference.

But it takes a parasitic and corrupt regime to really screw a country up - and the cabal has it down to a fine art.  Their behaviors and tactics are well documented throughout history.  A true student of history will understand that this behavior on the part of the cabal has repeated itself many times before.

To the extent we never learn from our history with the cabal, we are part of the problem.

However, failing to lock your door does not make you as guilty as the thief - at least not in a white European society.

Mon, 07/06/2015 - 19:56 | 6278297 TrustbutVerify
TrustbutVerify's picture

Buying US made goods and specifically avoiding the purchase of foreign goods builds pressure to hire new employees here. 

Mon, 07/06/2015 - 20:09 | 6278326 q99x2
q99x2's picture

We need to have a military and right now the NWO has ours. I think that everything comes down to that. The bankers have control of the military and they are prepared to use the military against the nations of NATO. I understand that the military is made up of NATO forces but they work for the NWO not the people. The banksters pay them by robbing the citizens and we will have a problem until the military returns to protect the nations that they represent. Maybe there is a way to show the NWO that it is in their best interest to go another direction during a time when things get ugly. If there becomes a time when many billionaires are in jeapordy and a better way to go exists that that way will be taken and some of the military will also go along.

I'm preparing to move to South America with enough to start out fresh.

Mon, 07/06/2015 - 20:15 | 6278343 BoPeople
BoPeople's picture

Back in the day when I used to think that CNBC added some value to the world, I thought Marc Faber told some truth.

I bet he could if he wanted to, but my guess he is in too deep to break with the system.

... or maybe he is just an old fool who got rich by carrying water for those in control.

Mon, 07/06/2015 - 20:32 | 6278389 Spiro The Greek
Spiro The Greek's picture

Greece has once more shown you the light of freedom, it's up to you how many years it will take YOU to see it. Last time it took you about 2000, you want to hope that this time you will do it faster.

Mon, 07/06/2015 - 22:31 | 6278759 reader2010
reader2010's picture

face it,  its the nwo at core,  which means burying nation states is the #1 priority using debt. 

Mon, 07/06/2015 - 22:58 | 6278829 JD59
JD59's picture

www.usdebtclock.org

Default is coming to your local neighborhood in your lifetime.

Do NOT follow this link or you will be banned from the site!