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Marc Faber Explains How Even The "Greatest Bear On Earth" Gets It Wrong

Tyler Durden's picture




 

Marc Faber was on Bloomberg TV dispensing his traditional sarcastic and sardonic wit in copious quantities. Among the traditional topics touched upon are stocks and specifically trading ranges, "I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P--that we will not go through", on Operation Twist part 1 (already announced) and part 2 (coming): "To some extent we are in midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013, they basically encourage financial institutions to borrow short-term and to buy 10-year Treasuries" on a contrarian outlook on stocks: "I am the greatest bear on earth, but if you compare Treasury bond yields and equities, equities look reasonably attractive", on why Insider "buying" just as we have said repeatedly, is far too much ado about nothing: "Compared to all the selling in the last six months the buying is relatively muted" and lastly, like a gracious loser, Faber admits he was wrong and Rosenberg was right "David Rosenberg was right and I was wrong. The 30-Year has not made a new low.  The low in December 2008 was 2.53%.  Now we're around 3.4%"... although with a caveat: "Basically we have an artificial market." Alas, no strategic observations on what particular precious metal one's girlfriend would appreciate the most in the current gold-platinum parity environment.

 

Faber on whether this is the market rally he’s been expecting:

"We had rally from the low on the ninth of August at 1,101 on the S&P to almost 1,200.  Then we came right down again.  Basically we did not make new lows.  And now I think we can rally again for a while."

Faber on how long his view of the market is:

“I think a lot of people will say the markets formed a double low and we have some technical indicators that are going to turn positive, so we could rally around 1,250, but as I said before, for me, we reached a high on May 2, 2011. 1,370 on the S&P--that we will not go through. My view is you have a lot of people with strategies that are very bullish. They have a year-end target of around 1,400-1,450 on the S&P. Then you have the super bear. I think both camps will be disappointed."

On why the markets won’t come back down again to the lows that were hit in 2009:

"On fundamentals one could make the case that we could go lower to around March 2009 lows at 666 on the S&P. But I think we have to be realistic that if the market dropped here another 10% or 15%, there would be for sure another quantitative easing move and other measures taken to support asset prices."

On what we’ll hear from Bernanke on Friday and whether there will be a selloff of Treasures after that:

"I think what [Bernanke] will say is that they are monitoring the situation, and they will take ‘appropriate measures’ when they are required.  To some extent we are in midst of QE3 already, because by announcing the Fed will keep zero interest rates until the middle of 2013, they basically encourage financial institutions to borrow short-term and to buy 10-year Treasuries."

On how uncertainty on a global level is affecting the markets:

"What I see extremely well is the stock market has traced out a major high between November of last year and June of this year and then fell sharply with very strong momentum and conviction very rapidly by close to 20%.  I think that is a very important signal that we should not overlook.  I think new highs are practically out of the question for the next six months to one year.  We will likely move lower, but as I said, I do not think we will have a complete collapse."

On why he’s not more bearish:

"I agree with you. I am the greatest bear on earth, but if you compare Treasury bond yields and equities, equities look reasonably attractive. I think we will have zero and below zero interest rates for the next 10 years. In other words, inflation adjusted to keep money in cash.  Finally, the mood is so negative right now as a contrarian, you do not take a huge short position when people are as bearish as they are right now and when insider buying has picked up as much. I am as bearish as the greatest bear is.  It is just that I do not believe stocks will implode."

On insider buying:

"The insider buying has picked up, but there is still a lot of insider selling.  Compared to all the selling in the last six months the buying is relatively muted. The insiders in general are a group of people against whom I would not bet against necessarily.  All I am saying is I am very bearish.  I think we will have inflation.  I think the Treasury market is a disaster waiting to happen.  I think the economy will slow down. They’re going to print money and we will go to war at some stage somewhere.  So, you are probably better off in equities than in bonds. My favorite investment remains gold.  As it happens the gold price is coming down, and I hope it will drop $100 or $200.  Not necessarily a prediction.  I think we will go down in a correction because there has been too much enthusiasm recently."

Faber commenting on Gary Schilling's bet against copper:

"I have known Gary Schilling since 1970 when we worked together. He has been a frequent bear about commodities and about copper. I happen to think copper is likely to come down, but I would not bet too heavily on it, because it takes a long time to bring on additional copper mines.  Unless the Chinese economy collapses, the demand for copper will stay relatively high.  If the Chinese economy collapses and Jim Chanos is right, then you want to be short not only copper, but short everything."

Faber where the 10-Year will go:

"I would like to remind you that the 10-year has made a new low. [Gluskin Sheff economist] David Rosenberg was right and I was wrong. The 30-Year has not made a new low.  The low in December 2008 was 2.53%.  Now we're around 3.4%.  Basically we have an artificial market.  The Fed has said we guarantee next to zero interest rates for the next two years. Banks and financial institutions are pouring into the 10-year because of the low rates at the present time. "

 

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Tue, 08/23/2011 - 17:56 | 1592364 Fukushima Sam
Fukushima Sam's picture

The girls love gold, bitchez!

Tue, 08/23/2011 - 18:21 | 1592382 ??
??'s picture

rally time for a while

give him credit for his equity calls

link to free standing video (only)

http://bit.ly/noZRyD

Tue, 08/23/2011 - 18:35 | 1592470 spiral_eyes
spiral_eyes's picture

"we're gonna find out if he is a true money printer or just an amateur" - faber

http://azizonomics.com/2011/08/23/what-if-qe3-doesnt-happen/ 

true money printer, bitchez!!

Tue, 08/23/2011 - 19:26 | 1592598 TheTmfreak
TheTmfreak's picture

I swear I can listen to this guy all day long. I wait with anticipation all the time to hear something from this guy.

"I'm the greatest bear on earth!"

 

Tue, 08/23/2011 - 20:21 | 1592773 narapoiddyslexia
narapoiddyslexia's picture

Marc Faber is the best. 

Tue, 08/23/2011 - 20:37 | 1592808 Cdad
Cdad's picture

Agreed.  You just have to love the guy.  How many on the Street have even half of his charisma?  Not to mention a sense of reality that is based in...reality.  Criminal syndicate Wall Street bankers really have a problem with reality.

Tue, 08/23/2011 - 20:37 | 1592809 Cdad
Cdad's picture

dupe

Wed, 08/24/2011 - 01:08 | 1593881 RagnarD
RagnarD's picture

+1. I paid for Mauldin's "conversations".  But I stopped that, despite their being some great stuff supplied there.  The only other thing I paid/pay for is the $200/year, soon to be $300/year for Faber Market Commentary - I can't afford full blown DoomGloomBoom.   Like reading ZH, a guiltly pleasure, that is often "bang on".  What better guilty pleasures to have?  :)

Tue, 08/23/2011 - 18:39 | 1592481 bbq on whitehou...
bbq on whitehouse lawn's picture

Maybe Tyler should set up a goldbug dateing site:)

And we can see if the ladies like gold or silver. The answer may suprise you.

Tue, 08/23/2011 - 19:02 | 1592541 wisefool
wisefool's picture

And then we can have the tax code and MSM clean up the problems of "single" moms/ladies who got an oz. of gold, yet the system must support a bunch of Faber Jrs. to the grave.

snark: In other news. DHS has revealed that the 500,000 poly etheline coffins standing on ready are not for the purpose of a mass killing event. They are not supposed to be truck liners for the new hybrid pick up to be released by Government Motors.

DHS has revealed that ladies like gold, and we need a place to put the bones when gold crosses $2000/oz. Our organic jobs program only needs young men with shovels, and wasted space we called graveyards.

Win the furture kids. Become a 6' junior miner!

/snarc

Tue, 08/23/2011 - 19:48 | 1592688 bbq on whitehou...
bbq on whitehouse lawn's picture

If i knew anything about women i would be a king among men and a slave among women.

 I would humbly turn to the great Shakespeare, when the issue of:

Frailty, thy name is woman!
William Shakespeare, "Hamlet", Act 1 scene 2
But as all men know:
Beware
Of entrance to a quarrel; but being in,
Bear't that the opposed may beware of thee.
Give every man thy ear, but few thy voice;
Take each man's censure, but reserve thy judgment.
Costly thy habit as thy purse can buy,
But not express'd in fancy; rich, not gaudy;
For the apparel oft proclaims the man.
William Shakespeare, "Hamlet", Act 1 scene 3
William knew what was said, was not ment, and what was ment was un-said.
When you are so confused as to not think, only then will you know thought.

 

Tue, 08/23/2011 - 20:26 | 1592782 wisefool
wisefool's picture

good stuff. Shakespeare warned us about digging up corpses. to further your and his points:

  1. Faber should not be flirting with bloomberg chicks about his stash of gold. People with PhDs in Econ like Krugman and Bernanke watch bloomberg. They are snivling bunch who might print more money and/or tax/confiscate posession of gold.
  2. I  respect the value of gold. it is cool stuff. but it is not for me. $99 WebOS HP tablets are selling for $300 right now on ebay are cool too. you can read shakespeare on them.
  3. I seriously dont want to pay for any of 50+ year old Faber's single mom girlfreinds' kids. or DSK's.
  4. Grave digging as a tradition is just as old as gold as money.
Tue, 08/23/2011 - 19:04 | 1592544 SilverIsKing
SilverIsKing's picture

I can tell you with absolute certainty that the ladies like Silver.

Tue, 08/23/2011 - 19:50 | 1592692 Fukushima Sam
Fukushima Sam's picture

Absolutely!  But there is something about the heft of gold that makes them extra creamy...  Get 18K silver alloy and it will have that white metal look but never lose it's shine!

Plus you know that deep down what they really love is that you are buying them something expensive.

Tue, 08/23/2011 - 20:03 | 1592737 bbq on whitehou...
bbq on whitehouse lawn's picture

So, coins and bars are out...:)

Even a club or septer,is out.

Have to add that to the list.  If you are a caveman use silver or wood, not gold when clubing women.

Tue, 08/23/2011 - 23:07 | 1593424 aces and eights
aces and eights's picture

This one sure does. I added some silver rounds to my stash today. On a normal day I can get assistance as soon as I walk in my local shop, but it was packed. Lots of people there to sell, a guy was buying his first 100 oz silver bar, another guy was upset because the plastic coin packaging didn't have 1 ounce written on it (nevermind the coin had it). Someone get the Sharpie! Definitely more <desperate> sellers than buyers. Sad.

Tue, 08/23/2011 - 19:02 | 1592540 UncleFester
UncleFester's picture

My girl likes diamonds.
Tradition, bitches.
http://www.youtube.com/watch?v=2Dj9v9s9buk
IFester

Tue, 08/23/2011 - 21:52 | 1593016 Koffieshop
Koffieshop's picture

Thumbs up. Very much worth reading if you are considering buying diamonds.
(Short summary: Don't do it! The whole market for those rocks is smoke and mirrors. The scarcity is artificial.)

Tue, 08/23/2011 - 19:54 | 1592710 NotApplicable
NotApplicable's picture

Girls like emotional marketing.

Tue, 08/23/2011 - 19:56 | 1592713 IQ 145
IQ 145's picture

We don't need a comment on the Gold/Platinum "parity"; it's completely meaningless. For those of you who get your ideas from internet blogs you might want to know that grown up metals investors don't give a rat's ass about platinum. the market is so tiny and so un-stable it's useless as a vehicle.

Tue, 08/23/2011 - 20:22 | 1592775 He_Who Carried ...
He_Who Carried The Sun's picture

Nickolas Ashford died at 70. He is survived by his wife Valerie Simpson.

Together the two wrote many successful songs for artist like Diana Ross etc...

So sad! Rest in Peace!

Tue, 08/23/2011 - 17:58 | 1592370 caerus
caerus's picture

yeah faber!

Tue, 08/23/2011 - 18:01 | 1592378 Mugatu
Mugatu's picture

I like Farber, but he reminds me of Dr Evil on Austin Powers so much he makes me laugh.  I love it when he pronounces Buuuurnannnnkeeee.

Tue, 08/23/2011 - 18:02 | 1592388 caerus
caerus's picture

i like his tiny pony tail

Tue, 08/23/2011 - 19:28 | 1592602 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I think Marc Faber is also Karl Lagerfeld, he just puts on the glasses and the fan as a distraction. I got your Nordfleisch right here, bubby.

Tue, 08/23/2011 - 18:04 | 1592396 Joshua Falken
Joshua Falken's picture

I knew Mark Faber when he was head loud mouth at Drexel Burnham Lambert in Hong Kong in the late '80's.

 

He consistently got things wrong then (Asia's own Barton Biggs) and he hasn't improved with age.

 

Journo's and sad lazy hacks like him because he always says contraversial stuff, but it's invartably wrong.

Tue, 08/23/2011 - 18:29 | 1592449 Ratscam
Ratscam's picture

actually i know him today personally, he was right many more times than wrong on the midterm to longterm choices. check his views on youtube. then again he is a trader and as a trader you sometimes change your short term views in seconds, however always stick to your midterm and especially long term views.

Tue, 08/23/2011 - 19:58 | 1592721 IQ 145
IQ 145's picture

False. He just told you exactly what you needed to know last Friday, exactly when you needed to know it; what happens next? "The rally". Correct. Also, there will be no new highs; I'm willing to bet on this too; he's as good a market reader as I am, and that's goddam good.

Tue, 08/23/2011 - 21:53 | 1593024 Fiat2Zero
Fiat2Zero's picture

What are you talking about?  Marc Faber gets it mostly right.

Who the fuck are you Drexel Lambert Burnout boy?

And learn how to spell check you tosser!  Back to the mail room for you.

Tue, 08/23/2011 - 18:12 | 1592405 baby_BLYTHE
baby_BLYTHE's picture

No one has been more correct on Gold than Faber.

It was when he said in an interview during early 2009 that "Gold will never go below $1,000 again",  that I bought the majority of my gold. 

A true legend, especially when it comes to timing market moves.

He should give himself more credit though, he did say treasuries were going to rally when the yield on the 10-year was near 4% late 2010- early 2011.

Tue, 08/23/2011 - 18:26 | 1592451 DosZap
DosZap's picture

baby_BLYTHE,

When the Bank of India snagged 200 Tons from the IMF,@$1,050.00 in '10, I knew we were not going to look back.At least in my lifetime.

All these morons on MSM do not get the total picture.............they continue to use OLD stats, and past history,are myopic and only take into account the West,and esp the US stats from the past.(and all scream BUBBLE!!!)

They fail to factor in the NEW( old) WORLD,China,  India, and Asia.......................we have a NEW market w/another 3 Billion clients coming after the same amounts of production,and limited supplies.Gold production is going DOWN,and Silver is also.

Unless MAJOR new finds are located, the supplies are only going to get harder to come by, and more expensive.

Plat should go back down, as there is a major falling out with the two largest producers and their miners............once this gets ironed out, look for a drop in price.

 

Wed, 08/24/2011 - 02:15 | 1594030 StychoKiller
StychoKiller's picture

"American Exceptionalism" blinds the MSM to what's going on in India, China, Vietnam, etc.

Tue, 08/23/2011 - 18:09 | 1592411 caerus
caerus's picture

the first bet expired...and i won it...

Tue, 08/23/2011 - 18:10 | 1592412 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

Someone tell me why pundits like Faber - not just him, Jim Rogers, Dave Morgan, and so many others, when asked about PM's ALWAYS say "if there's a pull back I'll buy" or don't recommend buying right now because they've gone up too much too quick???

Now, I realise that right now that might actually be the case; however, Faber, rogers et al have been saying they're holding onto their horses since under $1500, and now we'll never get back under $1650.

I like Faber, but I don't recommend trading on the advice of any stock picker. Go wit your gut and don't be overly afraid of swiming with the tide if the trend is firmly in place.

Tue, 08/23/2011 - 18:31 | 1592461 Pladizow
Pladizow's picture

Easy, because they bought at $250/oz.

Tue, 08/23/2011 - 19:01 | 1592536 Lord Blankcheck
Lord Blankcheck's picture

Because they only put them on TV after big rallies

 

What comes first:gold margin increases? or the Khadaffy duck hanging?

Tue, 08/23/2011 - 19:15 | 1592575 caerus
caerus's picture

cuz they want you to think for yourself

Tue, 08/23/2011 - 19:57 | 1592718 NotApplicable
NotApplicable's picture

BTFD

Tue, 08/23/2011 - 18:10 | 1592413 reader2010
reader2010's picture

back up the truck, and buy, buy, buy gold.

Tue, 08/23/2011 - 18:53 | 1592520 smore
smore's picture

Keats It Simple Saver:

 

'Gold is money, money gold,—that is all

 

 Ye know on earth, and all ye need to know.'

 

Tue, 08/23/2011 - 19:52 | 1592666 baby_BLYTHE
baby_BLYTHE's picture

Gold is money... and nothing else- J.P. Morgan (early 1900s before the Federal Reserve Act)

Tue, 08/23/2011 - 20:53 | 1592834 FEDbuster
FEDbuster's picture

I think it was Faber (maybe Jim Rogers?) who said to, "become your own central bank, and buy some gold and silver every month."   Kind of like a "DRIP" investment strategy for precious metals.  If you had done this over the past ten years, it would have worked out pretty well for you.

Tue, 08/23/2011 - 18:59 | 1592418 caerus
caerus's picture

anybody see that guy who raided gadhafi's room on tv?  dude had a sick gold chain and what looked like a gold walking stick...

edit: nice hat too nice chain revolution bitchez!

Tue, 08/23/2011 - 18:17 | 1592429 Caviar Emptor
Caviar Emptor's picture

Emperor Romulus Augustulus announces QE3 will be very large and will fix everything! 

 

Tue, 08/23/2011 - 19:10 | 1592556 Flakmeister
Flakmeister's picture

Pretty ironic name for the last one, eh?

Tue, 08/23/2011 - 18:23 | 1592445 slaughterer
slaughterer's picture

Is there a worthwhile biography out on Faber yet?   

Tue, 08/23/2011 - 18:24 | 1592447 Bokkenrijder
Bokkenrijder's picture

Lagavulin single malt 16 year I hope!

Tue, 08/23/2011 - 18:27 | 1592453 caerus
caerus's picture

nice...balvenie 15 here

Tue, 08/23/2011 - 20:21 | 1592774 Arrowhead
Arrowhead's picture

killed most of a Bal15 last weekend. still cant' get over how nice

Tue, 08/23/2011 - 22:32 | 1593223 caerus
caerus's picture

agreed

Tue, 08/23/2011 - 18:28 | 1592456 Racer
Racer's picture

"Basically we have an artificial market."

 

Yes.. we are in a world where the rich make mistakes yet get even richer robbing from the poorest to compensate for their losses

Tue, 08/23/2011 - 18:31 | 1592462 vocational tainee
vocational tainee's picture

semper idem..

Tue, 08/23/2011 - 18:32 | 1592463 Gubbmint Cheese
Gubbmint Cheese's picture

How can you be the biggest bear on earth and like stocks when the S&P is still chugging around 1,162?

Sorry - that concept just doesn't make sense to me. Maybe at 600, or 700.. but here? With US GDP expectations still ignoring a recession?

 

 

Tue, 08/23/2011 - 19:24 | 1592576 Reese Bobby
Reese Bobby's picture

Well given Bob Pisani is also bullish I guess we are going higher.  Faber is entertaining but Pisani is a deep, deep thinker.

Tue, 08/23/2011 - 20:03 | 1592736 IQ 145
IQ 145's picture

It's necessary to think. you "like them" because you're a chart reader and the reflex rally, or cat bounce, if you must, is on; the bulls will make profits for a little while. You are a big bear, because in the medium run; rather than the long run; the fucking thing is doomed. It's not that difficult. trading is the art of buying dips and selling tops.

Tue, 08/23/2011 - 21:24 | 1592891 Tuffmug
Tuffmug's picture

Gub Cheese,

You have to think like Faber in terms of real (inflation adjusted) rates of return to understand what he is saying. He expects stocks to outperform cash in the short term. Stop thinking of the dollar as a constant of value.

Tue, 08/23/2011 - 18:33 | 1592467 chump666
chump666's picture

Marc Faber is a legend. Picks a trading range when most were just momentum trading.

Still think we are going lower into lower trading ranges + wider volatility spreads.

Tue, 08/23/2011 - 20:07 | 1592750 IQ 145
IQ 145's picture

How long are you going to keep "thinking" this ? Until you're finally convinced, and buy the top.? Probably. If you're wrong picking the bottom, you take your pre-determined loss; there's not much more to say, really. Except that, that there never, never, was any such thing as a buy and hold anything; that is strictly the result of propaganda. "The 401K, we will all be rich when we retire"---the greatest brainwashing success story in human history.

Tue, 08/23/2011 - 21:08 | 1592866 chump666
chump666's picture

But I'll say this I'll bet Faber isn't long the market at all.  Anyone long is crazy.  You buy dips to sell in a few days, week max.  Watching Asia now, what is funny is that the super meltup from US markets close isn't morphing into Asian markets. Maybe japan downgrade had somthing to do with it, or BoA CDS spreads looking Lehman like... That is a bear signal.

Wed, 08/24/2011 - 09:09 | 1594646 FEDbuster
FEDbuster's picture

Faber said he thought Bernanke would come in with the printing press, if the nominal dollar value of the market dropped too much.  In 2009, the Bernanke wasn't as cock sure of himself, now he is an expert money printer and will do whatever it takes.  The Zimbabwe stock market had 200%+ up days, good chance the DOW will, too.  Like the IB commercial says, "Central banks are flooding the world with money...."  The numbers don't really matter. when the money is worthless  Price it in gold to get a better view.

Tue, 08/23/2011 - 18:38 | 1592474 chump666
chump666's picture

hahahah

"Unless the Chinese economy collapses, the demand for copper will stay relatively high.  If the Chinese economy collapses and Jim Chanos is right, then you want to be short not only copper, but short everything."

That's what we are waiting for Marc...China impode and the AUD and CAD short of the century

Tue, 08/23/2011 - 18:39 | 1592480 Atomizer
Atomizer's picture

Faber reminds me of Trump telling the CNBC lemmings that he just bought stock for the first time.

Paid figureheads must convince the public to support further dollar debasement and entitlement spending. At the end of day, you will be told.."We never saw it coming" LOL

Tue, 08/23/2011 - 18:39 | 1592482 anony
anony's picture

Klaatu Barada Nikto.

Tue, 08/23/2011 - 19:08 | 1592550 ToddGak
ToddGak's picture

I for one welcome our robot overlords.

Wed, 08/24/2011 - 00:23 | 1593755 sewerpickle
sewerpickle's picture

lol....LOL!!!!

Wed, 08/24/2011 - 00:25 | 1593758 sewerpickle
sewerpickle's picture

LOLOL!!!

Wed, 08/24/2011 - 00:25 | 1593759 sewerpickle
sewerpickle's picture

LOLOL!!!

Tue, 08/23/2011 - 18:53 | 1592519 Quinvarius
Quinvarius's picture

Basicly Faber is saying he heard QE3 is coming.  He is going to show you how right he can be when he has a cheat sheet.

Tue, 08/23/2011 - 18:58 | 1592527 monopoly
monopoly's picture
U.S. Stocks Rally on Stimulus Speculation  Bloomberg

So we do not rally on earnings, upbeat forecasts or increased revenue, we rally on "Stimulus talk". Anyone think this market is Not broken.

I like Marc, less BS then most.

Tue, 08/23/2011 - 18:59 | 1592530 vast-dom
vast-dom's picture

Clearly Faber has not gone to school on the KUMO! 

 

I respectfully disagree with Faber re: trading ranges. I think the markets will plunge shortly. Guess that makes me a Big Bad Ultra Bear.

Tue, 08/23/2011 - 19:42 | 1592657 MoneyWise
MoneyWise's picture

Yes, Market will plunge shortly to the upside, watch your Gold, when it breaks 1825..

Ultra bear my A$$.

Tue, 08/23/2011 - 20:10 | 1592757 IQ 145
IQ 145's picture

Didn't you get the memo from all the thirteen year olds on your internet blog? Gold is going to $2000; immediately. (sarcasm; decided this was necessary).

Tue, 08/23/2011 - 22:00 | 1593063 gwar5
gwar5's picture

Interesting interview with James Turk @goldmoney.com. He interviewed a Mr. McShirley who has studied the gold trading patterns. He concludes the Fed cartel probably has an algo that keeps the gold price from rising above 2% in a trading day, going back to at least 2001. 

 

When the gold price violates the 2% rule, gold will subsequently get smacked down hard. Same happens with too many +1% and +2% rises in a row trading outside the band. When we start to see gold break out with 3% rises in a trading day, that is the sign that the cartel is losing control and gold is about to go parabolic. Likewise, several trading days of 2% will require a downward correction by the cartel, such as the one we just saw.

 

Tue, 08/23/2011 - 20:28 | 1592789 chump666
chump666's picture

The market will plunge again, but not break 2009 lows. Thats what Faber is saying.  I agree.  But, we may get wild swings between the lower trading ranges, like (Dow) 200+ points up 200+ points down on weeky trades.

A pure swing trade market.

To break lows and completly FUBAR short the market is a China meltdown. 

Tue, 08/23/2011 - 19:21 | 1592589 Reese Bobby
Reese Bobby's picture

Moynihan does an excellent Ken Lewis imitation.

Tue, 08/23/2011 - 19:14 | 1592569 DavidC
DavidC's picture

Bernake (or his successor) will NOT overtly QE3 until they HAVE to. That will take a move to at least below 10,000 on the Dow or below 1,000 on the S&P. I think it's quite funny the way the market is rallying on the expectation of a QE3 announcement on Friday. It won't come.

DavidC

Tue, 08/23/2011 - 19:23 | 1592590 Reese Bobby
Reese Bobby's picture

You should have listened to this Faber interview.

Tue, 08/23/2011 - 20:11 | 1592759 DavidC
DavidC's picture

Certainly would have if the link was working for me (which it isn't) - I'm a big fan of Faber, Jim Rogers et al.

DavidC

Tue, 08/23/2011 - 19:14 | 1592571 freethinker4now
freethinker4now's picture

Marc Faber does Dracula

Tue, 08/23/2011 - 19:23 | 1592591 Arkadaba
Arkadaba's picture

Totally off topic but big news in Canada. Leader of the opposition died yesterday. State funeral to follow. Guy was universally respected. Lot's of "even if I didn't agree with his policies .... I respected him". As an NDP supporter (yes there are a few on ZH), it breaks my heart. Why he was loved? This Hour has 22 Minutes is the precursor to the Daily Show:

http://www.youtube.com/watch?v=c9us099TL50

And his letter to Canadians? Maybe the last honest politician ever:

http://www2.macleans.ca/2011/08/22/jack-laytons-letter-to-canadians/

Tue, 08/23/2011 - 20:12 | 1592762 IQ 145
IQ 145's picture

Really? I didn't know Canadians were opposed to anything. I thought t hey were just kind of, whatever.

Tue, 08/23/2011 - 20:53 | 1592832 zen0
zen0's picture

Canadians resent anyone and everyone. They just don't want to get anybody upset or hurt their feelings. Deep down, they hate your guts.

Tue, 08/23/2011 - 21:26 | 1592897 Arkadaba
Arkadaba's picture

I saw a similar post on the Canadian Banks thread. Was going to respond but didn't have the energy. Yes in the past, Canadian culture was defined in terms of the US. Blah.blah - Margaret Atwood -Just isn't that way anymore. Can't wait for a real leader to step up.

Tue, 08/23/2011 - 20:51 | 1592830 zen0
zen0's picture

He could afford to be honest because he never had significant power before. How Ironic, eh?

He was all for bailing out TBTF Canada at taxpayer expense....oh wait, the NDP is all about everything at taxpayer expense. The more the better.

Tue, 08/23/2011 - 21:08 | 1592867 Arkadaba
Arkadaba's picture

Really? I doubt JL was all about bailing the TBTF banks. I knew I might draw some comments just cause he is NDP. Whatever.

Tue, 08/23/2011 - 21:48 | 1592998 zen0
zen0's picture

C'mon man! NDP = tax and spend big government, not fiscal responsibility. they don't even know what fiscal means. He represented the union ultra-left, young university brainwashed temproray declasse petite bourgeousie student intelligencia and lumpen proletariat.

 

I used to be one, I memorized the program.

Wed, 08/24/2011 - 03:55 | 1594161 Arkadaba
Arkadaba's picture

I grew up in the fold and left for a long time before returning. And say what you may but at least in Canada union is not a four letter word (it's five actually). He was pragmatic which is why they won so big in the last election. And one of the few politicians that recognized that massive redistribution of wealth towards the upper .01% might not be the best thing for a society. 

Tue, 08/23/2011 - 21:19 | 1592886 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I didn't care for his politics, but loved his performance in the last election.  He was the only thing standing in the way of Harper's majority.  The liberals will get steamrolled by the conservatives who are in love with all the US governments worst qualities :(

Tue, 08/23/2011 - 21:58 | 1593050 zen0
zen0's picture

The Canadian government, whether socialist Conservative, Socialist Liberal, Socialist NDP, or Socialist Bloc Quebecois does what the U.S. Government allows them to do. Then they say "thank you sir!, may I have some more?".

 

The so-called Conservative Harper could easily serve in Obama's cabinet, and probably come up with better arguments for universal health care.

Tue, 08/23/2011 - 19:24 | 1592594 bb5
bb5's picture

Faber acts as though there are no QE restraints on Bernanke. There is a bit more than asset prices to worry about. 

Tue, 08/23/2011 - 19:39 | 1592647 MoneyWise
MoneyWise's picture

" If the Chinese economy collapses and Jim Chanos is right, then you want to be short not only copper, but short everything."
==
What an Idiot, what the f* he knows, just bold physic statements.
==
" I think a lot of people will say the markets formed a double low and we have some
technical indicators that are going to turn positive, so we could rally around 1,250,
but as I said before, for me, we reached a high on May 2,
2011. 1,370 on the S&P--that we will not go through"
==
Blah, balh, blah, - I think we go here, I think we go there.

I think we got another Earthquake..

f* clown..

Tue, 08/23/2011 - 19:56 | 1592717 caerus
caerus's picture

damnant quod non intellegunt

 

 

Tue, 08/23/2011 - 20:03 | 1592738 magpie
magpie's picture

Are you processing buy and sell orders from the Holy See ?

Tue, 08/23/2011 - 20:07 | 1592751 ozziindaus
ozziindaus's picture

"....and we will go to war at some stage somewhere." Too right. Isnt it obvious already? Those waiting for the China economic collapse must wait for the bombs to drop on it first. The stage has been set for the past 3 decades on developing a tough enough rival to the anglo-american military industrial complex after the collapse of the soviet union. The mid east is just an intermission. 

Tue, 08/23/2011 - 20:58 | 1592837 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I don't know.  The military industrial complex has done pretty darn well with their paper tiger "international terrorism".  It's amazing how effective the 9-11 false flag was to the deminati!  Now they have flipped the terrorist threat from brown men in caves in Western Pakistan to those nasty domestic white al qaeda who question the omnipotence of our beloved, constitution loving U. S.  government.  As you say, the Anglo-American-Jewish mafia cartel now appear bent on drawing  China and maybe Russia too into a worldwide conflict.  Peace?!  We don't need no stinkin peace when there is more power to be confiscated and more trillions to be had!

Tuco

Tue, 08/23/2011 - 21:01 | 1592843 magpie
magpie's picture

The slide to war.

Even today, Iran was pleading for peace if only Syria were left alone.

Who are the armed neutrals aka the USA of WW 3 ? Only the "peace" afterwards will tell.

Tue, 08/23/2011 - 22:03 | 1593078 reader2010
reader2010's picture

It doesn't have to be that way as long as China's ruling elite still play their assigned role, which is to provide slave labor and ultra cheap captial to the empire. Otherwise, a regime change is required in Beijing either peacefully or forcefully. Washington has been playing China and Russia like a violin for the last twenty plus years, and particularly has China by its balls. All the rest are smoke and mirror for the complex to adjustify the astronomical defense spending like there's no tomorrow.

Tue, 08/23/2011 - 20:47 | 1592822 I am Jobe
Tue, 08/23/2011 - 20:48 | 1592826 I am Jobe
Tue, 08/23/2011 - 22:36 | 1593239 reader2010
reader2010's picture

that ain't true no more. take a hard look at China's environment diaster. I ain't a believer of China Story as told by those presstitudes. 

Tue, 08/23/2011 - 21:00 | 1592846 rsnoble
rsnoble's picture

He's right, the high probably is in.  However any good trader would take advantage of the back and forth moves.  Many say this isn't possible and that t/a doesn't work, if it doesn't work then surely I wouldn't had made the $ I did today.  And btw, for all my bitching about being broke etc etc etc well compared to what I was before the massive economic recovery came along yeah im pretty much fucked.  I only have a 10k trading account but have been charting for years and finally getting pretty descent at it.  Now if I could just find a job that was worthwhile instead of having to bank the $500 I made today id have it made.  Oh well, I can eat and drink beer for another week.

Tue, 08/23/2011 - 21:04 | 1592856 rsnoble
rsnoble's picture

btw no thats not a typical day for me or likewise I wouldn't need to work also before anyone ask and im not much an options trader.  Always seems the trades I picker chop around for a bit before going the way I want and turn my option into a POS so I just stay away. For now.  I don't need more ways to lose money lmao.

Tue, 08/23/2011 - 21:09 | 1592871 vamoose1
vamoose1's picture

Stop borrowing, Stop it. Just stop borrowing, End it, what the fuck do you think  you are doing, you have no right to  do this,  stop borrowing,  immediately, stop your fucking bottowing. Fucking quit it it or its  violence 

 

    Stop borrowing. get responsible,   grow food on your roof,   take in a suffering number,  stop this madness,  stop borrowing,  there will never be another treasury issue. Its over,

 

    Stop  borrowing, we will agonize for 20 years  paying this madness back, You cannot borrow yourself rich,  its an immutable law. Stop  fucking borrowing, Stop it immediately,  start paying it down  and never do it again.

 

    Love your less fortunate neighbours. Share  during the  unaviodable generation of pain. Never ever do this again. Stop this.

Wed, 08/24/2011 - 09:54 | 1594803 LongBallsShortBrains
LongBallsShortBrains's picture

Just once more at a low rate? Please?

The libtards need their programs and those pesky rich don't want to pay for it. Tyrone need dem foodstamps know what I'm sayin? We promise we pay it back when we get some taxes from da rich as soon as everybody sees that is the only way out.

Don't axe me who we gonna tax next time when da rich leave or quit werkin. Just saying. Needs to go hang with one of my baby mommas to get mo stamps. Know what I'm saying?????

Tue, 08/23/2011 - 21:40 | 1592900 Atomizer
Atomizer's picture

Look at Gold & Silver live

http://mobile.netdania.com/

I do respect Marc, but timing is everything

Marc Faber "U S will default on debt or enter hyperinflation" 02-05-09

 

If anyone watched CNBC this morning, you know Michelle Caruso-Cabrera was wearing her shit goggles again. Telling us about a CNBS Gold segment due to be released. Hahahahaha

Shit Goggles

 

Edit:

CNBC Reporter Dons Goggles; Explains How She’s ‘Less Affected’ By Teargas/BULLSHIT Than Other Media Journalists

Tue, 08/23/2011 - 21:56 | 1593035 reader2010
reader2010's picture

here is a quote from Jim Rogers:

"I don`t like to sell something short unless it`s unbelievably expensive. And I mean unbelievably. I`ve shorted lots of things in my life that were expensive, only to see them get more expensive. In my early days on Wall Street, I learned one of my greatest lessons about market hysteria when I shorted University Computing in 1970, selling it at 48 USD and waiting for it to descend. I ended up covering my shorts when the price hit 72 USD. University Computing proceeded to go up to about 96 USD - and then plummeted to 2 USD. I was right to short the stock, but I still got wiped out, because at the time I did not have the guts or the money to stick with my convictions that the stock was way overpriced." - in Hot Commodities

Tue, 08/23/2011 - 22:27 | 1593189 Atomizer
Atomizer's picture

At some point a person has to switch camps to fill a auditorium and begin making money. Stop at 0:32.

 

http://www.youtube.com/watch?v=92JwzT4qyCo&feature=related

 

Just keep that 0:32 image burned in your memory.

Tue, 08/23/2011 - 22:52 | 1593332 PulauHantu29
PulauHantu29's picture

"Gold is my favorite investment."

Banks are buying bonds b/c of ZIRP.

 

The Super Bear Speaketh.

Tue, 08/23/2011 - 23:00 | 1593380 ReactionToClose...
ReactionToClosedMinds's picture

Here is a strong vote for Marc Faber .... certainly on macro-directional

Felix Zulauf, Marc Faber and the last few years shockingly, Fred Hickey (who went hard gold .... physical and outside the jurisdiction of the USA ala Sprott) ... have been among a very select few who have anticipated largely what is occurring  (and this site of course ... but I have been specifically told not to comment on,  even as a comnpliment, one Tyler Durden) ... when 'conventional' wisdom said they were too extreme & bearish.

I also know someone who worked with Faber in the very old days in Zurich (before Hong Kong)   ..... I will not get to specifics here.

From what I was told, Faber was the real deal, unconventional and very macro, holistic in his market assessments.  He realizes that with each passing year and 'globalization' ... it is a 'closed' system ... and there are fewer and fewer indirect pressure escape valves anymore as there were in yesteryear.

we are all in it together whether we want to be or not .... and Faber is telling you what the roller coaster ride really is going to be versus all the sell-side smooth malarkey.

 

Last: to the ZH site administrator .... can you add a button to vote on humor?   there are times when I just want to vote approvingly of the humor of a comment versus it's substance  ...  some of the funniest stuff I 've read in past years have been comments  here ... wickedly funny & clever .... it deserves recognition and appreciation .... 

 

 

Wed, 08/24/2011 - 04:49 | 1594226 FoieGras
FoieGras's picture

Faber and Rogers simply don't understand the bond market. Rosenberg has a better handle on that market.

Wed, 08/24/2011 - 05:34 | 1594265 maverick91919
maverick91919's picture

One of my favourite Faber quotes from a few years ago ... actually listed on wikipedia too...

 

"The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to MexicoHonduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in US. I've been doing my part.

Wed, 08/24/2011 - 08:38 | 1594509 falak pema
falak pema's picture

Talking about great quotes I like the Polish story :

The poor small bird who shivers in the miserable cold on the ground all huddled up, the big hearted cow who drops her load on the bird to keep it warm. As the bird now revels in its new warm goo of cow poo a hungry fox passes by and pulls it out of its new shangri-la and eats the birdy.

Morality of Polish joke : He who shits on you is not necessarily your enemy; he who pulls you out of the shit is not necessarily your friend. 

Lesson to comtemplate today for us all, especially those in US, with Benocide and QE to infinity. ...

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