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Marc Faber: "Next Week We Will See If Bernanke Is A True Money Printer Or Just An Amateur"

Tyler Durden's picture


"The whole world is mad" - so says Marc Faber when beginning his latest observations of the markets in the attached Bloomberg TV interview. "Stocks will be dropping 30%, then rallying 20%, and dropping another 30% -  that's going to be the pattern. And whoever can't live with that shouldn't be buying equities at all." And while the publisher of the Gloom, Boom & Doom report, said "there is a case to be ultrabearish about everything, and markets are going to go lower" he notes that markets are "extremely oversold" and he expects a "snap-back" rally in the U.S. Standard & Poor's 500 Index of about 40-50 points. That said, Faber sees no new highs in 2011. He concludes that he can already smell QE3, and that the "next week will be important to see if Bernanke is a true money printer or an amateur, and if he is a true money printer he will start printing soon." We are confident that gold can't wait to find out the answer. 


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Fri, 08/05/2011 - 03:56 | 1525920 Number 156
Number 156's picture

That guy would make a great super villan in a James bond Movie.

"No Mr Bond, I expect you to Die!"


Fri, 08/05/2011 - 04:27 | 1525953 dlmaniac
dlmaniac's picture

The little printer that could will be out next week to conquer the FIAT world.

Fri, 08/05/2011 - 04:40 | 1525962 Dan The Man
Dan The Man's picture

I think Amerika should devalue the meter as well.  Since Willis Tower in Chicago is now well back of the pack in building height, if they took the meter down to 2:1 they could regain some glory.   Willis Tower is 527m, but could be 1054 if measured in Amerikan meters!  Then it would easily surpass the Burj Khalifa at just 828m.


Fri, 08/05/2011 - 05:02 | 1525973 Spirit Of Truth
Spirit Of Truth's picture

Some other fine recent Bloomberg interviews:


VOICES OF WISDOM - U.S. Debt Crisis Is Contrived, James Grant Says - Video - Bloomberg  VOICES OF WISDOM - Investor Jim Rogers Holding Dollar, Euro, June 29 - Video - Bloomberg 


Fri, 08/05/2011 - 05:55 | 1526023 malikai
malikai's picture

<-- Transitory: BTFD.

<-- Run for the hills.


BloomTV is talking about gold right now. Mentioning "is gold too expensive?". LOL.

Fri, 08/05/2011 - 06:08 | 1526036 spiral_eyes
spiral_eyes's picture

‎"friday, friday, market's going down on friday
everybody's looking forward to the weekend
friday, friday, going down on friday
everybody's looking forward to the weekend
partying partying (NO)
partying partying (NO)
not fun, not fun, not fun, not fun
looking forward to the weekend"

Fri, 08/05/2011 - 04:53 | 1525967 Pay Day Today
Pay Day Today's picture

Hey can you still buy those little Italian FIATS? They might be going extinct soon...

Fri, 08/05/2011 - 06:36 | 1526056 BandGap
BandGap's picture

Faber has always made sense to me. His background, direct approach and his sense of humor make him compelling.  And he could as easily be Santa Claus in a European film about Christmas with that voice.  He presents himself as if he has the world by the balls without being overly arrogant.

Fri, 08/05/2011 - 07:46 | 1526147 LeBalance
LeBalance's picture

Mr. Bernanke is tied (lol) to the negotiating table.

"Mr. Faber, do you expect me to pay this debt?"

Marc Faber: "No, Mr. Bernanke, I expect you to print!"

Fri, 08/05/2011 - 07:52 | 1526159 slaughterer
slaughterer's picture


Fri, 08/05/2011 - 09:26 | 1526492 Mugatu
Mugatu's picture

He would also makes great Dr Evil on a Austin Powers movie:

"Could I got some laser beams on sharks - throw me a fricken bone!"

Fri, 08/05/2011 - 03:56 | 1525922 Doyle Hargraves
Doyle Hargraves's picture

He can print as good as any of them, and he will. The takedown of BAC will be the catalyst for him to start the presses rolling non-stop 24/7! Helicopters are already loaded Bitchez!

Fri, 08/05/2011 - 08:03 | 1526182 Cash_is_Trash
Cash_is_Trash's picture

What does BEP on the boxes mean?

Bureau of Extend and Pretend, perhapz

Fri, 08/05/2011 - 12:28 | 1527276 Doyle Hargraves
Doyle Hargraves's picture

Good one and probably true, it is bureau of counterfeiting, I mean Bureau of engraving and printing...this is some of the cash that was bribed , I mean lost in Iraq.

Fri, 08/05/2011 - 04:00 | 1525927 TwoShortPlanks
TwoShortPlanks's picture

It's time to pick your team chumps! No going back now.

Team 1
'The Lions':


Team 2
'The Sheeple':

See you all in the economic after-life!

Fri, 08/05/2011 - 08:08 | 1526189 LoneCapitalist
LoneCapitalist's picture

As a michigan resident, Im conditioned to bet against the lions.

Fri, 08/05/2011 - 04:03 | 1525930 Sequitur
Sequitur's picture

Anyone staying long utilities and large, blue-chip dividend-payers? Damage hasn't been as bad for them. If you are selling, where the hell can investors go besides metal? Credit union at 25 basis points?

Fri, 08/05/2011 - 04:09 | 1525934 Peter_Griffin
Peter_Griffin's picture

You may want to invest in Obama's re-election campaign.  I sold all my silver yesterday to invest in him.  We won't ever have to pay for gas agian.

Fri, 08/05/2011 - 05:58 | 1526026 malikai
malikai's picture

I'm with you. Obama 2012 baby! No more paying for rent, gas, or food.

That's the real reason that stuff isn't in the CPI - Obama will make it all free!

Fri, 08/05/2011 - 10:23 | 1526696 FEDbuster
FEDbuster's picture

Hasten the Collapse, OBAMA 2012

and of course Marc Faber knows "the Bernank" is a professional.

Pump it Up!

Pump it up when you don't really need it.
Pump it up until you can feel it.

Fri, 08/05/2011 - 14:53 | 1527850 malikai
malikai's picture

Yea well it sounds to me like a dare. A double dog dare, actually.

Fri, 08/05/2011 - 04:17 | 1525944 topcallingtroll
topcallingtroll's picture

I am mostly a speculator now, but averaging down into low beta plays makes a lot of sense to me. Dividends are almost starting to look good.

Dont use the taylor rule.

I am conservative and want dividends at their hundred year average before they truly excite me.

Fri, 08/05/2011 - 04:25 | 1525951 michigan independant
michigan independant's picture

By now you must enough sheep in deep freeze. LOL

Fri, 08/05/2011 - 07:43 | 1526144 KIPPY KAPPSLOCK

Hear, hear.  Michigan independant, I'll drink to that.  

Fri, 08/05/2011 - 04:07 | 1525933 A Man without Q...
A Man without Qualities's picture

Faber is right, people are panicking and they have gone mad, but the governments and central banks have been using the equity markets as a way of trying to convince a sceptical populous that the economy is getting better.  Therefore, when this crutch is removed, there is not much to cling on to and people feel scared...

Fri, 08/05/2011 - 08:59 | 1526373 DosZap
DosZap's picture

A Man without @ 04:07


IOW the .Goobers have been fooling(lying) and when the sheeple see the real economy and the truth, they are scared because they do not GET IT.

Well, they are going to get it...............and when they finally figure out what is going on, I fear for the country.

Fri, 08/05/2011 - 04:09 | 1525935 chump666
chump666's picture

has faber seen EZ CDS speads?  there will be no snap back rally anytime soon, money printing or not, unless its a trillionxtrillion

Fri, 08/05/2011 - 04:13 | 1525940 topcallingtroll
topcallingtroll's picture

THAt doesnt preclude a brief counter trend rally.

Fri, 08/05/2011 - 04:31 | 1525954 chump666
chump666's picture

we will see, a lot of bears got caught in   2009.  but we got a debt contagion, maybe a slight rally.  still short the nasdaq though.  so far its all doomsday

Fri, 08/05/2011 - 04:10 | 1525936 AngryGerman
AngryGerman's picture

and they should feel scared. basics are broke. so printing money does not yield relief, but only postpones. retail is happy to be raped.

Fri, 08/05/2011 - 07:01 | 1526085 Bobbyrib
Bobbyrib's picture

Postponing the inevitable is enough for the douchebags running the US economy (Bernanke and big money). Price stability it would seem is about raising prices so that companies don't have to drop prices, but when wages don't keep pace with inflation all it does is make things worse.

Fri, 08/05/2011 - 04:14 | 1525943 Doyle Hargraves
Doyle Hargraves's picture

The populace has every reason to be skeptical, especially when TPTB are telling you the sky is yellow when it is blue. The markets being propped up by ZIRP money printed and dropped from helicopters by a mad central banker who is only dropping the money on his pals at TBTF, there is no reason for anyone to trust in what is going on. Maybe people have wised up to the fed and their shenanigans, of course if that were the case Ron Paul would be +10-15 points ahead of the debt brotha right now in the polls, hopefully, the BAC crash that is coming will finally get the populace looking at alternatives to the current paradigm.

Fri, 08/05/2011 - 05:46 | 1526017 AssFire
AssFire's picture

CIA= Cocaine Import Agency:

No one trusts the government and now you see the result: People removing their money from the market that is more of a rigged QE casino than a long term investment.

Too much is messed up and there is a definite lack of confidence. The banks were TBTF, but the nation is too corrupt to save (TCTS).

"Our government has not been warring on poverty; it has been creating poverty by attacking every value and every institution on which the generation of wealth depends. And with this, inevitably, it is corroding our liberty. Unless the lethal pattern is changed -- which means , unless the philosophy that shapes this pattern is changed -- this nation will be destroyed." --WILLIAM E. SIMON, former Secretary of the Treasury from 1974 to 1977.
Fri, 08/05/2011 - 07:06 | 1526092 YHC-FTSE
YHC-FTSE's picture


TCTS! Good one.

Fri, 08/05/2011 - 04:15 | 1525945 unirealist
unirealist's picture

My sense is that Faber is heavily and now uncomfortably invested in equities, and he's whistling past the graveyard.

The stock market is "oversold???"  He's dreaming wishful dreams.



Fri, 08/05/2011 - 05:00 | 1525972 Zero Hero
Zero Hero's picture

I doubt Faber is heavily invested in equities. Since about Februrary he's been predicting a drop in the S&P of at least 20%. So far he's been pretty accurate.

Fri, 08/05/2011 - 05:05 | 1525979 Ratscam
Ratscam's picture

The most important thing is that:

Mark Faber has NO DEBT, not even a mortgage on any of his houses.

Fri, 08/05/2011 - 05:29 | 1526003 baby_BLYTHE
baby_BLYTHE's picture

He also said treasuries would rally around then, got that call right on as well.

Fri, 08/05/2011 - 06:23 | 1526049 Ghordius
Ghordius's picture

And he is telling everybody to buy a small amount of physical PM every month, regardless of the price.

Fri, 08/05/2011 - 04:59 | 1525974 Snidley Whipsnae
Snidley Whipsnae's picture

In this interview at King World News on 27 July, 2011, Faber states 'I am invested 25% equities, 20% gold, etc...'

Of course Faber is a big believer in investing in emerging markets. Faber is also on Sprott's board of directors and invested in Sprott's various silver funds.

The full interview may be heard here...

Fri, 08/05/2011 - 07:43 | 1526142 Central Bankster
Central Bankster's picture

Faber is heavily invested in equities?  When for years he's been bearish on equities and saying buy gold?  Yah, I'll have some of what you're smoking.

Fri, 08/05/2011 - 04:18 | 1525946 DutchR
DutchR's picture

One of The Bernank's ink cartridges washed ashore empty, so I guess he printed some QE3 paper allready:

Fri, 08/05/2011 - 04:21 | 1525947 falak pema
falak pema's picture

A golden bear and a sooth sayer...Joseph Balsamo of the Wall Street ponzi. 

Hats off, and helmets on!

Fri, 08/05/2011 - 04:32 | 1525955 chump666
chump666's picture

i guess faber can't work out why investors are buying up usts

Fri, 08/05/2011 - 09:02 | 1526407 DosZap
DosZap's picture


The Faber has a right to wonder, I am in awe of the flight to stupidity,buying a rifle that fires back at your head instead of where you point it, makes no sense.Suicide by self..........Buy UST's & Bonds.


Fri, 08/05/2011 - 17:42 | 1528357 IQ 145
IQ 145's picture

yes. 100%. It is truely amazing.

Fri, 08/05/2011 - 04:33 | 1525956 Moe Howard
Moe Howard's picture

Long ink.

Fri, 08/05/2011 - 04:34 | 1525957 Gustave
Gustave's picture

Seems like Mr. Faber tries to sell a szenario that is best for Gold.

Fri, 08/05/2011 - 04:37 | 1525958 Alex2245
Alex2245's picture

Interesting alert from economic prism.


When The Voters Get WHACKED - Again

Horrible debt celing deal and then stock market crashes  500 points.. Thank you congress!

Fri, 08/05/2011 - 04:40 | 1525963 GlenD
GlenD's picture

We need someone to remake the Michael Jackson song about his favourite rat.....

Ben, the two of us need look no more
We both found all the fiat we could hope for
With a friend to call my own
I'll never be alone
And you my friend will see
You've got a friend

Ben, you're always printing fiat here and there
(Here and there)
You feel you're fiat isn't wanted anywhere


Fri, 08/05/2011 - 04:52 | 1525965 Tic tock
Tic tock's picture

I reckon markets have to levitate today, the question is whether they continue to levitate into Monday, unusual but possible...the debate is what the see-saw between the dollar and the euro will look like. Essentially, we already know that a weak dollar is policy - so foreign capital investment 'should' be on the basis of stable economy/stable, cheap currency. But that will happen the longer the FED DOES NOT PRINT QE3. Letting the markets slide and sending dollars to Euroland, is a great way to - eventually- make your friends very rich, which after all, is the name of the game. Meanwhile Euroland, finds unlimited reserves to buy the Euro, keep the markets up, while the actual small business credit collapses. Win-win for the Nazis.
Trade this - other than the weather - it doesn't have a snowball's chance in Hell of working out. Look at what Propaganda turned the US into- look at the state of the UK. Money, but all inflation-money..and without a hegemonic military to back it up!
So, the Dollar reverts to Reserve. That's the difference between American NAzi and EuroFanatic Nazi.
anyway, short-term, look for a coming weakness in US dollar, Europe can't really be expected to fail.

Fri, 08/05/2011 - 08:53 | 1526346 GOSPLAN HERO
GOSPLAN HERO's picture

Nazi = National Socialist

The Nazis hate capitalism.


Gregor Strasser, National Socialist theologian, said: We National Socialists are enemies, deadly enemies, of the present capitalist system with its exploitation of the economically weak … and we are resolved under all circumstances to destroy this system.

Fri, 08/05/2011 - 04:53 | 1525969 I am a ..
I am a ..'s picture

Gold is READY!

Spot POG is up for the week by 1.46%. da Boyz didn't get their full take down yesterday. I have a target of $1658.87 as a major multiple year target and POG has been knocking at that door all week. At this hour, 5am NYT, it's made in the shade.

Let's see what happens at the std CRIMEX takedown at 8:30am. Will we see short covering or new shorts? Maybe new shorts and then old shorts covering. Could get real good-messy.

Fri, 08/05/2011 - 04:59 | 1525971 FoieGras
FoieGras's picture

Where have Jim Rogers and James Grant been the last couple days? How's their bond bear market thesis playing out?

Fri, 08/05/2011 - 07:29 | 1526127 Roger Knights
Roger Knights's picture

Not to mention Bill Gross.

Fri, 08/05/2011 - 07:59 | 1526172 Ricky Bobby
Ricky Bobby's picture

I agree don't waste time listening to those idiots,  I recomend Steve Liesmen, Jim Cramer, and Barton Biggs.

Fri, 08/05/2011 - 05:04 | 1525977 lunaticfringe
lunaticfringe's picture

The world is mad. Thankfully Faber is emotionally squared away. Lmao. He is a sinister old coot.

Extremely oversold markets? WTF? I am trying to figure out just what the hell he is referring to. I have been thinking markets have been overbought for two years...with the only thing behaving somewhat rationally is the commodity complex. At least commodities have been somewhat priced based on rising inflation and devalued currencies. 


Fri, 08/05/2011 - 05:10 | 1525982 chump666
chump666's picture

actually think the market isn't doomy enough

Fri, 08/05/2011 - 05:20 | 1525995 Drag Racer
Drag Racer's picture

and on the other channel so you don't focus too much on any one thing...


Clinton uses the 'fights on' rhetoric towards Syria's leader in saying " Assad Has Lost Legitimacy".


In addition,  is this not a blatent warning of attack if Assad does not do what 'we' want?

“Actions speak louder than words,” Clinton said when asked by reporters in Washington why she stopped short of calling for Assad to give up power. The U.S. is seeking international support for “actions to send a very clear message to the Assad regime that there’s a price to pay,” she said.

Fri, 08/05/2011 - 05:23 | 1525996 Cult of Criminality
Cult of Criminality's picture

Look in my eyes

what do you see

The cult of criminality


Like shalom bernanke and lil timmy

Ooooh Oooh

The cult of criminality


Good day to all :>)

Fri, 08/05/2011 - 05:26 | 1525999 doggings
Fri, 08/05/2011 - 06:20 | 1526047 SamuelMaverick
SamuelMaverick's picture

Hugh Hendy got his clock cleaned shorting China.  Have not heard from him in the media since.

Fri, 08/05/2011 - 05:30 | 1526005 Snidley Whipsnae
Snidley Whipsnae's picture

Although Euro equities mkts are selling off they are down about half (percentage wise) of the US equities plunge seen yesterday.

PMs are showing extreme strength, and stability, considering what is occuring in equities around the world.

Gold/silver are truly acting as stable currencies so far... regardless of what Benny calls them. Every time PMs are sold off strong hands are stepping up and buying.

This is the trial for PMs that we have been waiting for... so far it doesn't look like a replay of 2008.

Be prepared for more bumpy rides ahead... and good luck to all of us.

Fri, 08/05/2011 - 05:28 | 1526006 Cult of Criminality
Cult of Criminality's picture

Like Nazi Pelosi and Harry reid

Oh Oh Oh

Cult of criminality.......

Off to the slave labor camps..... bye











Fri, 08/05/2011 - 06:06 | 1526033 iNull
iNull's picture

Another of these mouthy NWO guys. Blah blah blah, all talk no action.

Fri, 08/05/2011 - 05:32 | 1526008 AngryGerman
AngryGerman's picture

For the moment downfall has stopped. But just wait until one of the idiots gows back on TV, telling how irrational the market is and that everything is all pink and flowers. Sarkozy most likely is blowing Merkel right now to convince her that La France is an economy superbe...

Even although they might be able to save the Euro this time again (by printing money), just wait until next round of elections. Anyone thinks that austerity packages will stand up to the anger of voters? Whoever is in opposition just have to say that cuts are wrong, and they will get voted in. And then they have two choices: Either drop austerity (-> bye bye euro) or betray voters (-> hello riots).

Fri, 08/05/2011 - 07:26 | 1526115 bigdumbnugly
bigdumbnugly's picture

sarkozy is blowing merkle?

hmmm, well... maybe.

i always wondered.

Fri, 08/05/2011 - 05:34 | 1526009 oogs66
oogs66's picture

liquidity has evaporated and fed and ecb will try to do something to prop up this market heading to the weekend

Fri, 08/05/2011 - 06:02 | 1526028 iNull
iNull's picture

yawwwwwwn, Oh I'm sorry you were a market analyst, ...I forgot you were there.

You may put that shotgun down. "Just put it down." That's right.

Wyatt. We were saying....

Fri, 08/05/2011 - 06:02 | 1526029 iNull
iNull's picture

yawwwwwwn, Oh I'm sorry you were a market analyst, ...I forgot you were there.

You may put that shotgun down. "Just put it down." That's right.

Wyatt. We were saying....

Fri, 08/05/2011 - 06:02 | 1526030 Cult of Criminality
Cult of Criminality's picture

econo-parody song;Bearish

Fri, 08/05/2011 - 06:10 | 1526038 BlackholeDivestment
BlackholeDivestment's picture

...his Nazi sounding accent kills me. lol

                        great guy. and yah, I know he's not really a Nazi. lol

Fri, 08/05/2011 - 06:23 | 1526048 iNull
iNull's picture

It's killing me that when he finally has the chance to sink the knife into the the back of the Bernankenstein, he balks.

Fucking coward.

Fri, 08/05/2011 - 08:30 | 1526250 j0nx
j0nx's picture

Sounds like someone else I know *cough* Ron Paul *cough*

Fri, 08/05/2011 - 06:13 | 1526044 Sp00ky
Sp00ky's picture

Smart money always comes in on these down times, novices flee - 'oh! I must buy gold!'  The super rich don't buy dips, they wait for the bottoms, shorting all the way.  You don't get to be in the elite 0.01% class following the herd.

OMG!  Obama wants to give MORE money to the lazy unemployed!  Effing socialist pig!  Surely nobody will go for this handout.


Fri, 08/05/2011 - 06:20 | 1526046 iNull
iNull's picture

Sounds like he his rooting for BerNankenfranke.

Uhm yeah. The world is mad. But the world has ALWAYS been mad.

When has the world NOT been mad?

Fri, 08/05/2011 - 06:41 | 1526051 iNull
iNull's picture

God I hate Bubblevision.

If God is listening. I will volunteer to torture these CNBC assholes in the afterlife, ...if the position is open.

Fri, 08/05/2011 - 07:23 | 1526111 iNull
iNull's picture

Interesting that the daemon would come along and -1 all my posts. YOU, daemon, are so transparent. And you, daemon, and YOUR KIND, will be destroyed. Utterly. You think God is not watching?

Fri, 08/05/2011 - 07:23 | 1526112 iNull
iNull's picture

Interesting that the daemon would come along and -1 all my posts. YOU, daemon, are so transparent. And you, daemon, and YOUR KIND, will be destroyed. Utterly. You think God is not watching?

Fri, 08/05/2011 - 06:26 | 1526052 iNull
iNull's picture

I could bitch slap this mealy mouthed SOB.

Fri, 08/05/2011 - 06:32 | 1526054 madbomber
Fri, 08/05/2011 - 06:37 | 1526058 iNull
iNull's picture

"The technical damage has ocurred"

Yes. We can have a "snap back" rally.

You are right Mr. Faber. What you fail to take into account is that the WHOLE SYSTEM IS BROKEN.

If you factored that into your bland, tame, blameless analysis you would see...

The entire western system is coming down...


Fri, 08/05/2011 - 07:00 | 1526083 Dr. Engali
Dr. Engali's picture

You obviously haven't aren't familiar with his work. He has been spot on from the beginning. Maybe you should compare your net worth statement. See who has a real clue on how to make money. I'd prefer his analysis over some anonymous troll.

Fri, 08/05/2011 - 07:16 | 1526101 iNull
iNull's picture

I beg to differ, sir. The fact is I've been listening to Mr Faber for years. I greatly respect his opnion. I used to be one of his biggest fans in fact. I looked forward to his contribution to the contrarian views in the Annual Forbes Round Table (before the Satanist Rupert Murdoch bought the paper). So, I am VERY familiar with his work. That is not the issue.

Fri, 08/05/2011 - 07:41 | 1526141 Dr. Engali
Dr. Engali's picture

Then you know that he has said from the beginning .... "we will print and print and print. Then we will have hyperinflation and we will go to war"

Fri, 08/05/2011 - 08:38 | 1526275 j0nx
j0nx's picture

There will be no hyperinflation. The rest of the world is just as fucked as we are, if not more so, and due to global wage arbitrage there can be NO mechanism for passing that increase into wages here. We stagflate and die a slow death with stagnant wages, high UE and high commodity prices.

As an aside, WTF is with the server(s) here lately? Either make the hedge a pay site or shut it the F down and upgrade it. You guys are big leagues now so start upgrading your backend 486 to something more powerful because this is getting ridiculous.

Fri, 08/05/2011 - 07:10 | 1526095 madbomber
madbomber's picture



what system.   surely not yours?    it is not of YOU.    YOU are fine.  are YOU okay?  well then.


YA know?  just a theory.













Fri, 08/05/2011 - 06:40 | 1526060 AngryGerman
AngryGerman's picture

Like no-one has seen it coming. Monetary expansion and market efficiency, go suck it up. All academics should be fired for teaching this crap for the last 60 years. and nobel price winners: let them keep it, it's not a real one anyway.

Fri, 08/05/2011 - 06:50 | 1526069 bigdumbnugly
bigdumbnugly's picture

great.  just what the bernanke needs - a challenge.

Fri, 08/05/2011 - 06:54 | 1526073 Henry Chinaski
Henry Chinaski's picture

Bernanke an amatuer?  What?  Like the Money Printer Next Door?

Nah, he is a seasoned professional.  It is a natural reflex now. He doesn't even think about it anymore. 

Fri, 08/05/2011 - 06:58 | 1526081 kito
kito's picture

the only markets that will be "oversold" will be the supermarkets......prepare.......

Fri, 08/05/2011 - 07:00 | 1526086 Withdrawn Sanction
Withdrawn Sanction's picture

Having transferred much of the losses from private balance sheets to public ones, the problem to be dealt with this time is an order of magnitude larger and vastly more complex (intertwined). To get a visual on what the Fed/ECB face, imagine they are facing the imminent failure of Hoover dam. These guys are standing in the valley immediately below the dam armed with....buckets (or more aptly, a garden hose--since their solution to a wave of defaults is....why, liquidity of course). In any event, the tsunami of bad debts will simply overwhelm their Lilliputian efforts. To concretize this analogy, US banks hold reserves of $1.5ish trillion. Total US debt (of all stripes, but ex most derivatives) exceeds $52 trillion. Even a mild destruction of part of that $52 trillion ball, easily swamps the cash position of the banking system. Good luck w/that, Mr. B.

Fri, 08/05/2011 - 07:02 | 1526088 DarkStarDog
DarkStarDog's picture

Faber was on CNBS and Steve LIEman broke out the END OF THE WORLD card.  LOL, no not the end of the world, just the end of the Zombies Banksters World. 

Fri, 08/05/2011 - 07:03 | 1526089 gwar5
gwar5's picture



Farber is a little all over tha map in this interview. Markets "oversold"?  Maybe he meant overbought, with QE2? 

Upshot is that markets are finally unraveling without the QE to prop them up, and speculation and action of more QE will gyrate them to do crazy things here. Somebody made a good point yesterday that anticipation of QE3 is the only thing that has kept the markets from tumbling sooner.  Markets traded in fiat remain doubly unstable and still spiraling downward in real terms.

PM's are still the go to asset and gold is looking like the champ. Bernanke wants to be seen as the reluctant amateur who prints because he has to, not because he likes it.

Fri, 08/05/2011 - 07:40 | 1526136 YHC-FTSE
YHC-FTSE's picture

Overbought with QE2 sounds better. 


Are the markets finally unravelling without the QE prop? Yes, but it really should have happened earlier. I haven't paid much attention to the POMO schedule lately, but I remember that I expected to be going through this drop in July, not now. This seems to me to be a manipulation to justify QEiii, which almost everyone on ZH predicted. We said it had to come, and now it has. Remember all the strategies for PMs in late June based on a big fall in July? Most reckoned the price of gold would drop with the Dow and make a buying opportunity, so urged others to sell their gold holdings to buy back later, whilst some advocated (me) buying more and waiting because perhaps gold prices would not drop with the rest of the markets this time in contradiction to historical data. 


Well, we're watching it happening, and gold is rising in the opposite direction to the markets. I don't care that I was right, I was really hoping for a cheap PM buying opportunity, but it looks like I will get an "expensive" (Irony - ok?) buying opportunity instead. :).


I think you're right about anticipation, but once again, we all know it will be fulfilled. The question is, is Bernanke going to eke it out to steadily climb for the 2012 elections with one last ejaculation to make it look all rosy for the president, or is he going to go full out mental with the printer to end 2011 with record highs? What the real world will make of this, I can only guess but it isn't looking good for world peace.

Fri, 08/05/2011 - 07:27 | 1526119 Scorpio69er
Scorpio69er's picture

"he can already smell QE3"

No, that's the mustard on his tie from lunch at Der Wienerschnitzel. 

Fri, 08/05/2011 - 07:28 | 1526121 madbomber
madbomber's picture













Fri, 08/05/2011 - 07:59 | 1526174 Loose Caboose
Loose Caboose's picture

I think this is it.  There will be no QE3.  They are going to let this thing fall apart - everywhere.  If it were otherwise, we would have seen the POTUS on the boob tube by now, calming the masses with empty rhetoric.  They will do nothing. PPT maybe, but that will be the full extent of any serious intervention in this clusterfuck.


Fri, 08/05/2011 - 13:59 | 1527661 YHC-FTSE
YHC-FTSE's picture

Unlikely. <1% that there will be no QEiii this year. Look at the markets right now: A 1% rise on the crappy employment data, because it wasn't as crappy as predicted. The Dow probably ending the day in the green. It's the silly season, isn't it? 

Fri, 08/05/2011 - 16:19 | 1528126 malek
malek's picture

The politicians will NOT start doing something, anything - but will stand around doing nothing, while everything unravels.

Yeah, sounds like what real life experience taught us. /sarc

Fri, 08/05/2011 - 08:18 | 1526210 Grand Supercycle
Grand Supercycle's picture

SP500 bounce is possible from current oversold levels due to Thursday sell off.

Fri, 08/05/2011 - 08:29 | 1526243 mayhem_korner
mayhem_korner's picture

+2011 (per oz)

Fri, 08/05/2011 - 08:36 | 1526269 GCT
GCT's picture

It takes rehersal time, speech writing, clothing design and voice coaching before our great savior will arrive on the boob tube.  Nothing but money printing and market movements happen overnight.

Fri, 08/05/2011 - 08:50 | 1526332 Monedas
Monedas's picture

I'll bet Marc Faber shares Monedas' revulsion towards poor people ? There are studies that confirm poor people tend to sing off key ! Monedas 2011 Lions in cages, people in "camps", Zebras and Wildebeasts in packing houses and plow the plains of east Afrika !

Fri, 08/05/2011 - 08:52 | 1526348 lynnybee
lynnybee's picture

L.O.L. , luv Dr. Faber.      maybe i'm also going mad ........... this whole situation is now a laugh a minute.     & to think i used to be a hand-wringing worrying person !    not anymore, i've given up all cares & hope.      REMEMBER WHAT WOODY ALLEN SAID,  " I FELT BETTER WHEN I GAVE UP ALL HOPE ! "  

Fri, 08/05/2011 - 09:03 | 1526395 jjsilver
jjsilver's picture

Want to know what the federal reserve is all about
Congressman Louis T. Mcfadden speech 7-8-1934

Fri, 08/05/2011 - 09:50 | 1526573 Downtoolong
Downtoolong's picture

"Stocks will be dropping 30%, then rallying 20%, and dropping another 30% -  that's going to be the pattern. And whoever can't live with that shouldn't be buying equities at all."

Agreed. This guy sees the real long term problem for the markets. It’s not the level, it’s the volatility that will scare true investors away. I still think Warren Buffett summarized it best: “95% of all people in  the stock market shouldn’t be there”.


Fri, 08/05/2011 - 14:46 | 1527833 YHC-FTSE
YHC-FTSE's picture

Somebody ought to tell old Warren that 70% of all the people in the stock maket ain't human.

Fri, 08/05/2011 - 10:43 | 1526734 brokesville
brokesville's picture

In Bartertown, electricity, vehicles, functioning technology are made possible by a crude methane refinery, fueled by FIAT feces RUN BY MASTER OBAMA AND BLASTER BERNANKE

Fri, 08/05/2011 - 13:31 | 1527582 stiler
stiler's picture

burger meister, meister-burger!

Fri, 08/05/2011 - 14:35 | 1527808 PulauHantu29
PulauHantu29's picture

Faber's key statement:

"Stocks will be dropping 30%, then rallying 20%, and dropping another 30% -  that's going to be the pattern. And whoever can't live with that shouldn't be buying equities at all."


I jumped ship on the bounce this morning. I agree with Faber.

Wed, 09/14/2011 - 04:55 | 1667448 chinawholesaler
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Mon, 12/19/2011 - 04:21 | 1993465 simoniddings
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People without the proper financial knowledge and stock market experience should not jump into it right now. Even seasoned veterans of the stock market are finding it hard to predict trends correctly. The average citizen should focus on accumulating wealth and improving personal risk management.

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