Mark Faber: "I Am Convinced The Whole Derivatives Market Will Cease To Exist And Will Go To Zero"

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Wed, 12/21/2011 - 18:58 | 2002704 Al Gorerhythm
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Obamma signs NDAA = War declared on US citizens. Will the US military be deployed in the US on the affected doctrin of "spreading democracy and freedom"?

Too ironic!

It sure is needed though (and novel) -- at least half of the equation anyway. Now which part of "democracy and freedom" makes it an oxymoronic equation and one we should should do away with?

Raise the Republic! Good movie in the making.

Wed, 12/21/2011 - 22:07 | 2003167 UP Forester
UP Forester's picture

With their tanks, and their bombs, and their bombs, and their guns....

What's in their heads? (x2) Zombie....

Wed, 12/21/2011 - 17:06 | 2002262 yabyum
yabyum's picture

And happy holidays to you Mark!

Wed, 12/21/2011 - 17:06 | 2002263 Jlmadyson
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If so, then we are cooked.

Wed, 12/21/2011 - 17:06 | 2002264 CapitalistRock
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I've been panicking for years. It's not clear what the heck one should do in a panic. Gold and silver? Got it. Real estate? Got it. Cash and stocks? Done. But it's still not going to preserve purchasing power.

Wed, 12/21/2011 - 17:26 | 2002283 TruthInSunshine
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Capitalistrock said:

"It's not clear what the heck one should do in a panic."


***NSFW - Language***

You Need To Diversify Your Bonds Nigga

*Blame Chapelle and his writers for use of the 'N' word, and not me, PC Police.

Wed, 12/21/2011 - 17:16 | 2002303 BobPaulson
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If by purchasing power you mean: "A continuous stream of cheap goods manufactured by poor people in exchange for bullshit promises and the odd air raid", yeah, I think you can kiss that goodbye for a while until somebody thinks up a new scam for making people semi-willingly be slaves. Unless of course you are the slave, then your purchasing power is soon to rocket up significantly after the string of wars coming down the pike.

Wed, 12/21/2011 - 17:19 | 2002321 NumberNone
NumberNone's picture

It's going to be allright guys...Ally Bank is advertising 1% a year CD in the banner ad I'm seeing. 

Thu, 12/22/2011 - 01:06 | 2003493 GMadScientist
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Very well. They may deposit cash with me, but only if they provide the first years 1% up-front.


Wed, 12/21/2011 - 18:48 | 2002699 toothpicker
toothpicker's picture

We're all slaves

Wed, 12/21/2011 - 17:22 | 2002337 mmc1968
mmc1968's picture

And what good has panicking done for you?

Wed, 12/21/2011 - 18:00 | 2002482 tmosley
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I can't speak for him, but the silver I bought with the paper I liquidated when I panicked is worth about 4x what it was when I did it.

Imagine what will happen when everyone panics.

Wed, 12/21/2011 - 18:35 | 2002652 NotApplicable
NotApplicable's picture

Keeps my bowels churning. And my clenched jaw has ground my teeth down so that they appear even now.

I don't refer to it as panicking though, I like to call it optimistic pessimism.


Wed, 12/21/2011 - 17:41 | 2002412 au_bayitch
au_bayitch's picture

Ditto. Examine Maslow's hierarchy of needs. Trade the skiboat for a chicken coop. Divorce the wife of 27 years, cash in the IRA and 401K's and buy 8 acre small farm. Get a shotgun and cut down small trees practicing. Plant a vegetable garden. It is work, but sleeping better. GoodLuck

Thu, 12/22/2011 - 09:27 | 2003770 krispkritter
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Chicken coop=check

Wife=N/A (dog)


8 acres=check



Thanks for reinforcing the fact my choices are valid(unlike most people who think I'm nuts)...

Wed, 12/21/2011 - 17:07 | 2002267 SheepDog-One
SheepDog-One's picture

'Derivatives market' never really existed in the first place! So how could it do anything BUT eventually cease to exist?

Wed, 12/21/2011 - 17:37 | 2002399 RockyRacoon
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Kinda like one o' them particles they create in accelerators?   They only last a miniscule amount of time.   These derivatives created by the mind of financiers has a longer life span but do much more damage!

Wed, 12/21/2011 - 17:08 | 2002271 Dcheeth2
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Diversify with home grown cabbage soup. Its the bomb!!

Wed, 12/21/2011 - 17:15 | 2002300 Let them eat iPads
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Cabbage is cheap as borcht. I love the stuff.

Wed, 12/21/2011 - 18:50 | 2002708 toothpicker
toothpicker's picture

Can you print cabbage? / Ben

Wed, 12/21/2011 - 17:47 | 2002437's picture

Try some tree cabbage aka collards. Nice leafy greens sticking out of the snow. Can't beat that.

Thu, 12/22/2011 - 08:23 | 2003713 Snidley Whipsnae
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Don't forget Kale, it's also a winter hardy veggie.

Wed, 12/21/2011 - 17:08 | 2002273 JustObserving
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All $707 trillion will go to zero?  Austerity to eternity?  Who will attend Obama's $35,000 a plate dinners? Who will buy Roubini's $5.5 million NY apartment?

Wed, 12/21/2011 - 17:49 | 2002446's picture

This Diamond Ring Doesn't Shine for Me Anyone.

Wed, 12/21/2011 - 17:10 | 2002276 youLilQuantFuker
youLilQuantFuker's picture

"Saudi Prince in Night Club spends one million dollar"

Camel Jockey makin' it rain with the joo confetti.

Wed, 12/21/2011 - 17:30 | 2002372 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Jews didn't invent fiat

Wed, 12/21/2011 - 17:50 | 2002452's picture

Just like everything else, fiat was invented by the Chinese.

Wed, 12/21/2011 - 17:55 | 2002468 Mr Lennon Hendrix
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Funny, that

Wed, 12/21/2011 - 21:17 | 2003084 youLilQuantFuker
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Historians.... WGAS, I was just introducing the Prince.

Thu, 12/22/2011 - 02:13 | 2003566 GMadScientist
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Is it less frustrating if he gives it to some schmuck who buys BAC with it?


Wed, 12/21/2011 - 17:11 | 2002280 Odin
Odin's picture

How he thinks the market won't crash like a heroin addict on monday if derivatives go to zero is beyond me...

Wed, 12/21/2011 - 17:28 | 2002368 Citxmech
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Because when folks are sifting through the wreckage - there's actual value in certain companies.  It's all about real asset value based upon human need.  No matter what happens to the monetary system, folks are going to need energy, food, water, etc.

Wed, 12/21/2011 - 17:31 | 2002376 Mr Lennon Hendrix
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Corporations rely on people, people do not rely on corporations.

Wed, 12/21/2011 - 17:37 | 2002398 chunga
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Corporations ARE people. Too bad so many of them are evil.

What kind of person would Monsanto be?

Wed, 12/21/2011 - 17:46 | 2002435 NumberNone
NumberNone's picture

Corporations literally are people via Corporate Personhood.  And be nice or you'll hurt their feelings! 

Wed, 12/21/2011 - 17:55 | 2002461's picture

Corporations rely on people, people do not rely on corporations.

How many products that you will use today were not made, marketed or distributed by corporations? You're not making your own breakfast cereal or having your toothbrushes produced through local cottage industry, are you?

Wed, 12/21/2011 - 18:00 | 2002483 Mr Lennon Hendrix
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I made my own breakfast and the ingredients were made locally.  My toothbrush is not made from one of the leading "brands". 

And the point is that corporations should not be deemed persons.  They do not think or feel.  They should be treated as businesses.  The only reason for the Rockefeller/Morgan corporate coup was so they could get away with murder and not be held accountable.  They were pissed that the unions were getting the better of them, and they needed a way out.

I will write it with a slight tweek that maybe is a more accurate tatement. 

Corporations rely on people, people do not need to rely on corporations.

Wed, 12/21/2011 - 18:24 | 2002599 chunga
chunga's picture

I didn't have any breakfast...or lunch. I did brush my teeth; honestly I don't know who made the brush I just hope to hell it wasn't Monsanto.

Thu, 12/22/2011 - 00:47 | 2003165's picture

How are you using a computer to access the Internet without relying on corporations? Are any of the local products you use produced using electricity or transported by internal combustion engines running on gasoline?  Does your place of business use energy and equipment that is produced by corporations? Do you travel to work or to shop in a corporate built vehicle using corporate supplied oil? Do you ever read books, watch TV or movies or listen to popular music? Should all economic activity be limited to that which can be performed by sole proprietorships and partnerships?

I could keep going forever because anyone who is not living naked on an island depends on a complex economic system which must be able to organize itself in order to operate.


Thu, 12/22/2011 - 01:11 | 2003504 Mr Lennon Hendrix
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I wouldn't be online if it wasn't for ZH.  I haven't had cable for close to a decade.  I don't watch movies unless that's what a friend wants to do.  I would rather play guitar and write.

I sold a car after the Fall of '08, and only recently bought one, but the car cost me a few hundred dollars.  I rode my bike everywhere for the three years inbetween, and I have likely put more miles in on bikes than cars (excluding long trips I only do every once in a while) during the last decade.

I have noticed lately that many of the books I buy are from small publishers, and I always shop at local bookstores.  The computer I am using is from 2001- it doesn't get youtube. 

I would love to live on an island, naked.  But instead I am choosing to participate in this crazy world until the wheels fall off. 

But.....none of this is my point.  We don't need corporations, and they don't make us any happier.  It's not like people are happier now than they were during the last decade, century, melenium.  Technology just gave us a different lifestyle.  It didn't change who we are.  We are the same people that hunted and gathered, the same people who have lived and loved, sang and traveled, all of it.  It's all the same as it ever was.  Wake up.

Thu, 12/22/2011 - 01:39 | 2003535's picture

Petrochemicals allow humans to expend 10 calories of fuel in order to produce 1 calorie of food. Without petrochemicals the  food supply would only support a small fraction of Earth's present population. Billions would die. Please explain how vast quantities of petrochemicals can be discovered, extracted, refined and transported without corporations.

Thu, 12/22/2011 - 01:43 | 2003543's picture

I always hated that song.

Wed, 12/21/2011 - 17:11 | 2002285 WhiteNight123129
WhiteNight123129's picture

Well if you have stocks and you are record holder, some of those stocks will reprice inflation. You have to be record holder though.


Wed, 12/21/2011 - 17:15 | 2002296 Odin
Odin's picture

Yeah I understand his premise that they will just print and print and print, but if the derivative markets goes to shit, there will be a lot of counter-party systemic risk that would send the whole house of cards crashing down... But what do I know I'm no "doctor"...

Wed, 12/21/2011 - 18:13 | 2002544 Papasmurf
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Not easily done these days now that brokers refuse to deliver your property.

Wed, 12/21/2011 - 17:12 | 2002289 AngelFace
AngelFace's picture

Saw this clip on YouTube a week ago.  MF rocks. MF for czar of ECB and head of the US Fed!

Wed, 12/21/2011 - 17:12 | 2002290 AngelFace
AngelFace's picture

Saw this clip on YouTube a week ago.  MF rocks. MF for czar of ECB and head of the US Fed!

Wed, 12/21/2011 - 17:15 | 2002297 New American Re...
New American Revolution's picture

Zero out derivatives, agreed, there is no other eventual option.

Wed, 12/21/2011 - 17:27 | 2002364 NotApplicable
NotApplicable's picture

Ahh! There's that word, eventual.

Until then, there's always infinity.

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