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Faber On Europe's Dilemma And China's Hard Landing
Marc Faber brought his typical sense of reality and truthfulness to CNBC's Squawk Box this morning and in doing so managed to stop Jeremy Siegel saying long-term-buy-and-hold for more than 7 minutes. Siegel represented the 'new-hopers' with his insight that if the ECB would just guarantee all euro-wide deposits then all would be well in the world. Faber comes over-the-top in his gentle European accent reminding the academic that "it is hard to guarantee something you have no control over". Faber then proceeds to state his view that Europe is in a deepening recession and more importantly that China is growing at a far lower pace than official statistics would infer. Reminding viewers that about 40% of US corporate profits are from outside the US and the 'vicious spiral chain reaction' from slowing demand in China for industrial commodities has lagged effects on producing countries and then aggregate demand globally, Faber fears broad-based risk sell-offs but remains notably less sanguine on US Treasuries.
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Fuck you Bernanke!
"End of the Road" was pulled down from (CIA)tube:
http://www.silverdoctors.com/end-of-the-road-how-money-became-worthless%...
http://www.youtube.com/watch?feature=player_embedded&v=gHT0na7JXs0
TPTB are in PANIC mode.
Disagree: Insurance companies guarantee against weather all the time -- they have no control over that.
But it IS hard to guarantee something that you don't have the ability to cover -- that's why no private insurance company writes flood insurance. The actuarial data show that the damage numbers are too big, too often.
This is the same thing as the net/gross notional point in the CDS market that TD has been so on top of.
Insurance co's know the odds of having to pay out, to the penny!
Insurance companies know how much more they need to charge one group of people to cover any payouts to another group of people.
Insurance companies measure risk based on historical data. When history doesn't repeat, they are wrong and claims may cost more than what they had projected, hence losses.
In the event of a disaster, i.e. major earthquake in NYC, where buildings are toppled, the insurance companies wouldn't have the resources available to cover the losses.
So, when everything is going according to plan, insuring things one has no control over is possible. When events don't follow the script...
i like how faber basically called china's offical gdp numbers bullshit. lol
So ... if you insure your house ... it'll never blow down?
Awesome!
That's the point he's making, the guarantee doesn't alter the fact of collapse occurring anyway.
The guarantee has zero to do with the collapse process, its cause and dynamics, it just means you put innocent third-parties on the hook for the damage.
Doncha love freedum and demockracy?
Actually .... No.
People just like to wave low-cred 'guarantees' around as though they can solve the fact that the debts can never be repaid ... no, not by taxpayers either.
The end.
Both videos "removed by user"
Pulled because it was illegally posted. Here's the official link:
http://100thmonkeyfilms.com/endoftheroad/watch/
a,
the links don't work as you say and
there is malicious software associated
with the link, so you know.
who runs sac's lil playpen of moronic add-ons, spying, junking, and avatar- and user-creation and backdating when he's not pretending he knows everything and is a good guy, too @ zH?
bilary? bibi? bambi?
- Marc Faber over the last year
We all know what he really thinks but then he would never get on the air. He would just say go 90% gold and fuck it.
I hear Sony is selling at a major discount right now.
i lived in Japan, look at the stock prices back in 91, 92... etc. and compare to now. As for Sony, I worked there; company is full of retards. The South Koreans make the same shit at a better price point; and you have other major Japanese companies like Toshiba, Sharp, Matsushita, Pinoneer... etc.
i don't believe faber ever has or ever will face a camera and be unwilling to say or do something totally asinine, even with his undies still on
no, the whartonProf doesn't have control over what is 2B guaranteed, but the cBanksters and pols think they do, marc; b/c they do? or could? isn't that what canada is calling the bGees to discuss?
but marc is somewhat correct despite the cheap shot, but as hendrix_lemon sez, pretending the short-term trend is the long-term trend is just bullshit, even if tyler does eat the corn outa faber's shit
but we all know more than we write or say and slewie thinks something is being unspoken here, and if i can see it, maybe lennon_H can?
and tyler?
>>>paying the debt back with cheaper corn, oil, OJ, coffee and cotton, wool, and synthetics which are now cheaper mean we are trying to dig out with a more valuable (as opposed to de-valued) dollar which is a smaller shovel for $-denominated debt, but a bigger shovel for the EU as the fungibility ratios change significantly here, as daCrisisDezBoyz deepens and the chairsatan's tradingPost is starting to look like he is getting some decent pelts, here
of course we'll own them when it's over, but we'll be in so deep, ourselves, that china will hafta devalue 40% just to stay in the game!
rocky! R0CKY! R0CKY!!! [until the trend4hypno-conditioned traderZ based upon falsified data streams and oceans of garbage changes to risk0n again, of course...]
"I would recommend people every month buy some gold."
- Marc Faber Two years ago
http://www.zerohedge.com/article/marc-faber-i-would-recommend-people-buy-every-month-some-gold-ever
Man, fightthepower is fast. Maybe the harbinger of an Occupy ZH movement.
How Much Gold Do Investors Need? Zero Should Suffice
The Wall Street Journal
My reply to the WSJ:
BAH!
WSJ Response to DCRB:
HAH!
In other news: MarketWatch top headline for now:
More trouble than it's worth?
Making a case against gold
Gold, Jack Hough argues in the wake of the precious metal's 6% May slide, continues to defy all efforts to calculate its worth — or even to describe how it behaves as an investment. Your portfolio doesn't need it
+ 1
Hey, Jack Hough:
BAH!
http://www.bloomberg.com/consumer-spending/2012-05-30/the-real-cost-of-o...
Let them keep selling that story and I'll laugh all the way to the bank..so to speak..... I really wouldn't go to a bank since I hate them fuckers...more like I'll laugh all the way to the gun shop.
Investors sometimes use the cost of producing the world’s next ounce of gold as an approximate floor for its price. That cost is between $1,200 and $1,400 now,
*************
Pure bullshit--try at tops $500/oz-
***************
Some investors say gold is a hedge against inflation. That is true of any good or service that consumers can be counted on to want in coming years, such as oil or poultry farms. Gold’s wild swings have made it a poor proxy for the consumer-price index, a key inflation measure.
Perhaps that is because only 12% of gold’s demand comes from industrial applications, according to the World Gold Council, a trade group. The rest comes from jewelry and investment (and the divide between those two isn’t always clear).
*************
Assbackwards--gold is not an inflation hedge and never has been-
Golds industrial and jewelry component is so small it's not even worth mentioning and we know there has been next to no consumer demand-but-
"Something" has been driving the price higher for the last 11 years-
Think smart money-
Yeah, okay. "who wanted to own gold in the seventies" right? Anywho it is protection against outright default by governments. That doesn't mean the price is right however. Anyone who says or implies "prices only move in one direction" should be ignored.
No tax holiday for repatraition of corporate profit. You want tax-free profit, buy foreign assets....and good luck.
+ 1
Over the past few years, there are only two assets that have gone up in the Bearing household:
1) Our Peruvian bearing import company
2) Our gold
EVERYTHING else is about breakeven or down.
Ddint i see a headline earlier that had Faber sayign to buy stocks and sell bonds?
When Siegel began speaking and said: "and I think, honestly.....", It seems to imply he does some
dishonest thinking too.
If these hopium fukkers would just listen to the best "gloom and doomers" (i.e., Faber, Rogers) they would make a sh!tload of money for themselves and their sheeple. The so called doomers have consistently called the liquidity bullsh!t ramps as well.
Europe down hard NOW. China probably due for a hard landing soon. LIES everywhere here in the USA.
Oh, but we're all doomers here, at the "jumped the shark" website that is ZH...
LOL! Except it really isn't funny what they are doing to us...
Slow Motion Doom!
http://silvervigilante.com
Treasuries. You mean those things that can be printed at will and yield next to nothing of things that can be printed at will?
Treasuries = Ponzi scheme
why isnt J&J - with all the potential for decline in medicare/ medicaid/obamcare / union benefits and decline in national income everywhere in europe and usa not going to have decline in revenue, margins and therefore forward P/E is potentially very high and dividends may not be sustainable ?
Think there was a sucessful cancer drug trail reported over the weekend.
I bet they'd all cause cancer in large enough doses.
What? You mean to tell me they finally started doing some bong hits & stumbled on the cure?
J&J might feel the pinch in places, but overall, they are part of the primary mechanism that will transfer the last bit of wealth from aging Boomers to Fedgov Cronies Inc.
Siegel sounds really stressed out.
Everyone is getting stressed out. This thing is lasting longer than would have thought. Siegel and the bulltards keep thinking tomorrow will bring sunshine and everyday more bad news. The bears keep thinking the crash is tomorrow and we survive another day, slow motion death by a thousand cuts
This would be the classic "muddle-through" scenario that was tossed about in 2008.
Wifey's a yenta
What about the US landing?
http://confoundedinterest.wordpress.com/2012/06/04/ny-ism-and-factory-or...
Short Elmer Fudd
Wasn't Jeremy Siegel thoroughly discredited over a decade ago? The fact that man still has a job is testament to the college bubble.
Wharton is overrated as long as they do not have one professor teaching Austrian School economics. Who decided that only the neo liberal Keynesian approach is the right model?
I'll give ya 3 guesses.
And so it ends...
http://now.msn.com/entertainment/0604-mr-trololo-dies.aspx?_p=811ca57a-3846-4505-ae3b-9a5fce14971f&_nwpt=1
The last piece of the puzzle.
God, can't you just feel another Big Lie getting ready to come out of Europe or the Fed this PM?
Amazing how we'll think of anyone or anything instead of how f*cked the USA is...
China? Europe? Oh please. They're just the appetizers, but everyone is filling up on them.
Meanwhile the Chef's Piece de Resistance is finishing up in the Kitchen.
Interesting to see Siegel reading the words off the teleprompter. Are they really his words or is he just the shill of the day, reading the words of the masters of propaganda?
The stock market is a small sideshow compared to the problems we have. And, people like Siegel pump it like it is THE only issue.
The recent Commitment of Traders Report show spec funds and small specs at RECORD short positions in the Euro. No arguing the trend is lower but a snap back rally on any kind of HOPE could be brutal.
http://bit.ly/KY4i2O
Jeremy Siegel, October 22, 2007, you can't be more wrong ...
http://www.youtube.com/watch?v=4LhlPEWww6k
Jeremy Siegel should be flipping burgers or driving a cab somewhere....
Yeah, how can anyone pay to go to Wharton and have this clown as professor? He was surprised by the capital outflows in the periphery? Where the fuck was he all along? He never understood the nature of this Euro crisis and still doesn't understand it. These fucking mainstream economists....
He needs to be schooled by hugh hendry like this other "professor" was.
Hugh Hendry: "I Would Recommend You Panic"http://www.youtube.com/watch?v=3oZtPK6hqLU
Just reinforces our thinking on this site. And I love when I see headlines such as this from MarketWatch. Beyond words.
Making a case against gold
Gold, Jack Hough argues in the wake of the precious metal's 6% May slide, continues to defy all efforts to calculate its worth — or even to describe how it behaves as an investment. Your portfolio doesn't need it.
Amazing how the debate can be completely undone by pulling out of a hat any economic statistic which has since been proven not to factor into economic growth. Economic growth has long been the financialization of economies through derivatives and anything and eveything not contributing to this economic 'wealth' has to be discarded.
Chinese hoarding of copper is well known, and a major contributer to the copper market, and considered a market on very shaky economic foundations regardless of manufacturing demand. Similarily, concrete is used in deficit spending on infrastructure projects, not private enterprise, but this swooshes right past.
But CNBC announcers can't grasp the fact, because its all about talking points.
I want whatever Siegel smokes.
LOL
Jeremy Siegal: DOW 17,000?
http://video.cnbc.com/gallery/?video=3000081091
Yep i just watched that, thanks JSiegle = assclown.
Un-Fucking Believable, this guy is a professor at a university!!!
Fave quote from the interviewer, playing devil's advocate.....
"Wouldn't a 15,000 plus dow jones require the revival of animal spirits driving valuation back to historical levels which would be a difficult feat given economic and geo-political economics in terms of the head winds of our country's fiscal imbalances?"
The problem with the stock market is that the price is going down, that's all you need to know...
I thnk it is dangerous to buy stocks based on relative strength of dividend yields against bond yields due to the artificial level of rates. In free market conditions, bond yields would be much higher. Also, to say EU stocks are cheap based on PE, is dangerous because earnings will likely collapse in EU soon.
"It so happened that the euro came into existence at a time when the German economy was in the doldrums.
Then the euro made investors believe that southern Europe was safe, causing a huge fall in interest rates there
This in turn led to vast inflows of capital; the flip side of these inflows was large trade deficits, and large counterpart German surpluses, which was just what the Germans needed.
Everyone was happy for a few years and then the bubble burst, leading to the crisis today."
Just sayin,
Becky Quick is looking old. Even professional make-up artists can't hide those lines under her eyes. She might lose her access to Warren Buffett if he upgrades to a younger, hotter model.
Hard Landing !
A yearlong U.S. Senate Armed Services Committee probe has found that vast numbers of counterfeit Chinese-made electronic parts are being used in U.S. military equipment. More than 70 percent of an estimated one million suspect counterfeit parts used in the Navy’s SH-60B helicopters, P-8A Poseidon planes, C-130Js, and C-27Js cargo planes, among others, were traced back to China, the BBC reports. Committee staff that attempted to travel to China for the investigation were not granted visas. “Rather than acknowledging the problem and moving aggressively to shut down counterfeiters the Chinese government has tried to avoid scrutiny,” according to the report. The committee also criticized China for failing to shut down counterfeit manufacturers claiming “counterfeit electronic parts are sold openly in public markets in China.” In response,the official China Daily called the accusation an “attempt to distract the U.S. public from the real problems that are plaguing the country” and noted that the U.S. has maintained a military embargo on China for 23 years and called on Washington “to find out who purchased the parts and how they passed muster.”
[Editor’s Note: The report described the Government-Industry Data Exchange Program (GIDEP) designed to log suspected fake parts as “woefully lacking.” Between 2009 and 2010 GIDEP received 217 reports of fake counterfeit components only 13 of which came from U.S. government agencies. The National Defense Authorization Act, signed into law on December 31, aims to stop counterfeit parts from entering the U.S.]
Israel’s Defense Force Chief of Staff, Lt. Gen Benny Gantz, has visited Beijing for talks with Vice President Xi Jinping and People’s Liberation Army chief Gen. Chen Bingde. “Both militaries should make greater efforts to cooperate and learn from each other,” Xi said. He called on “the militaries of both countries to boost cooperation and promote bilateral relations,” the official China Radio International reports. Chen said high-level military visits and exchanges among technical groups have enriched their cooperation, the official People’s Daily reports. Last August Chen became the first Chinese military chief to visit Israel, The Jerusalem Postreports.
actually... one can honesty guarantee soiled pants when one has lost control of their bowels
Not necessarily, that's only the case if one can also afford to eat.
Here's MY investment tip:
I just want to say one word to you, just one word - guillotines