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Marc Faber Resumes Bloodfeud With Treasurys, Still Sees Entire Financial System Imploding

Tyler Durden's picture




 

The only thing that is as consistent as Marc Faber's message to get out of government bonds ahead of a bout of global hyperinflation which will arrive once the vicious cycle of printing to pay interest finally dawns (which in turn would happen once central planners lose control of an artificially created situation, which by definition, always eventually happens), is the passion with which he repeats it over... and over... and over, like a man possessed, if ultimately 100% correct. In an interview with Bloomberg's Sara Eisen and Erik Schatzker this morning, he does what he does best - cuts to the chase: "if you think it through and you are as bearish as I am, and you think the whole financial system will one day collapse, we don't know if in 3 years, or 5 years, or 10 years, but one day there will be a reset, and everything will be essentially started anew, then you are better off in equities than in government bonds, because a lot of government bonds will either default or they will have to print so much money that the purchasing power of money will depreciate very rapidly." When asked if he feels uncomfortable predicting a calamity in bonds again, as he did back 2009, Faber is laconically empathic: "it is true that last year the 30 year bond returned 30%, and i owe David Rosenberg a bottle of whiskey" but analogizes: "from August 1999 to March 2000, the Nasdaq doubled, but at no time in that timeframe was it a good buy. And after it people lost a lot of money. We have now a symptom of monetary inflation and this is record corporate profits, and the second symptoms is essentially a bubble in high quality bonds: people seem so insecure and so much worried, they would rather be in a US bond with no yield, than in bonds that may not repay me, or in equities that may drop 30%. But it does not make them a good buy longer term." Yep: only Faber can get away with calling the bond market the second coming of the Nasdaq bubble and look cool doing it.

 

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Fri, 01/20/2012 - 11:26 | 2081034 Cognitive Dissonance
Cognitive Dissonance's picture

"Yep: only Faber can get away with calling the bond market the second coming of the Nasdaq bubble and look cool doing it."

I love the accent. It's so cool to hear him when he tongue lashes those who are in charge of the present day financial insanity.

Fri, 01/20/2012 - 11:36 | 2081068 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Marc Faber is a machine sent back in time to destroy the Keynesian Fiat Ponzi....

[cue Terminator theme song]

Fri, 01/20/2012 - 11:42 | 2081078 LawsofPhysics
LawsofPhysics's picture

Yep, either that or just another desparate old man who has benefitted from the rape of productive labor and near the end of his life wants to redeem himself by "calling out" all the same gimmics that made him rich.

Fri, 01/20/2012 - 11:47 | 2081101 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I've never heard him discuss politics, if that is what you mean, but when it comes to economic policy, although he hides his hand, he obviously does not agree with "money printing".  Since I can assume he wants sound money policy I think that he is at least knee deep in the water of Truth.

Fri, 01/20/2012 - 11:54 | 2081127 LawsofPhysics
LawsofPhysics's picture

What real product of value has he delivered via the private sector?  Maybe I have indeed missed something.

Fri, 01/20/2012 - 12:00 | 2081147 Oh regional Indian
Oh regional Indian's picture

My rule of thumb is very simple LOP.

Never trust a man in a tie. He HAS to be telling a lie.

ori

-gold-de-spell-ed/

Fri, 01/20/2012 - 12:25 | 2081260 LongBallsShortBrains
LongBallsShortBrains's picture

Faber is right on,

My rule of thumb about guys with ties is that they are not afraid to waste your time.

Fri, 01/20/2012 - 13:20 | 2081449 kito
kito's picture

faber is not right on. hyperinflation is highly improbable. the best scenario one could ever imagine is two more decades of lost growth as the cbs continue printing enough to keep up with deflationary deleveraging forces--i believe ray dalio called for 15 more years. and in my humble opinion, thats the absolute best outcome. worst is the destruction of all asset classes while ben maintains the strength of the dollar, his only source of power and the key to his legacy................

Fri, 01/20/2012 - 13:28 | 2081477 redpill
redpill's picture

Japan is the new model for price stabiliteeeeee

Fri, 01/20/2012 - 13:29 | 2081482 SheepDog-One
SheepDog-One's picture

How can broke unemployed people pay for hyperinflation? 

Fri, 01/20/2012 - 13:43 | 2081527 fuu
fuu's picture

They can't as wages are not inflating at the same time.

Fri, 01/20/2012 - 14:06 | 2081606 Spitzer
Spitzer's picture

Total bullshit

Look at the currencies in SE Asia when their economy collapsed. The Thai Baht and Indo Ringgit lost half their value (INFLATION) and they didnt even print any money.

for details... http://freegoldobserver.blogspot.com/2011/10/forgotten-crisis-and-what-e...

Fri, 01/20/2012 - 18:43 | 2082636 Marco
Marco's picture

Exactly, this is where inflation comes from when a trade deficit country gets forced into trade balance ... foreign currency holders dump the currency to get anything of value in return.

Now of course there are deflationary powers too in this situation, which wins is up in the air ... but regardless going from trade deficit to trade balance will force a drop in standard of living. So you get fucked either way.

Fri, 01/20/2012 - 13:57 | 2081579 walküre
walküre's picture

Their option is starving.

Fri, 01/20/2012 - 18:52 | 2082669 akak
akak's picture

How can broke unemployed people pay for hyperinflation?

Again with the stupid and/or disingenuous false dichotomy: "Deflation or Hyperinflation".

In actual fact, as has happened SO many times in just the last three or four decades, what we are almost certainly going to experience is NOT some mythical fiat currency deflation --- which is utterly absurd and intellectual insulting, not to mention historically nonexistent --- but a rapid and significant decline in the value of our fiat currency, much as the Southeast Asian nations did in the late 1990s, or Argentina did in 2001-2002, or Iceland did in 2008-2009, etc. etc.  Maybe a relatively brief period of 300-400% price inflation might not technically count as "hyperinflation" a la Zimbabwe, but it is still going to suck big time, and devastate the savings of the average person, precisely as it is and will be designed to do.

Oh, and how are we going to pay for it?  We will pay as EVERY population has ever paid for fiat currency depreciation: in a declining standard of living, and the wiping-out of most of our personal savings.

Fri, 01/20/2012 - 21:08 | 2082997 Captain Kink
Captain Kink's picture

bingo. +10

Fri, 01/20/2012 - 12:34 | 2081285 roadhazard
roadhazard's picture

That has always been my first personal commandment. As a result I have lived a pretty mellow life keeping them at arms length.

Fri, 01/20/2012 - 12:11 | 2081211 I am a Man I am...
I am a Man I am Forty's picture

ummmm, how about advising people in the private sector on how not to get financially ass raped by your government and federal reserve/central bank?  how about being one of the lone non kool aid drinking voices over many many years?

Fri, 01/20/2012 - 16:26 | 2082192 NewThor
NewThor's picture

This Kool-Aid is deliscious!

I wonder if Sarah likes to cuddle?

 

Fri, 01/20/2012 - 12:36 | 2081296 brewing
brewing's picture

he keeps singing the same old song.  when you shoot a shotgun, it's bound to hit something at some point...

Fri, 01/20/2012 - 13:40 | 2081514 dirtbagger
dirtbagger's picture

All of the Financial Newsletters have a pretty dismal prediction record when viewed over a longer time span.   Sure, guys like Faber have good runs where the predictions are spot on,  but so do the dice in a craps game.  

He is just another pundit who figured out a long time ago that the best way to make money on the markets was to talk about them.  Certainly, some pundits make better predictions than others (eg Abby Cohen), but at the end of the day, they are just bookies that make money no matter what happens in the markets. 

Fri, 01/20/2012 - 11:51 | 2081116 A Lunatic
A Lunatic's picture

Be in the world but not of the world.

Fri, 01/20/2012 - 11:56 | 2081135 LawsofPhysics
LawsofPhysics's picture

Ah yes, if only your could take philosophical crap to the bank.

Fri, 01/20/2012 - 12:07 | 2081173 LeBalance
LeBalance's picture

interacting with the bank as your preference, eh?

railing against "rape of productive labor," but unable to make a clean break from the bank.

-- clinical --

/lie on the couch and tell ZH all about it./

Fri, 01/20/2012 - 14:45 | 2081766 BlackholeDivestment
BlackholeDivestment's picture

...LeBalance, thanks for the laugh, there is a spaghetti noodle in my nose now. 

http://bible.cc/daniel/5-27.htm

http://bible.cc/revelation/6-5.htm

Fri, 01/20/2012 - 15:42 | 2082023 Things that go bump
Things that go bump's picture

Only if you are planning on joining a religious order and taking vows.

Fri, 01/20/2012 - 16:39 | 2082246 kito
kito's picture

@lunatic---you are the world

Fri, 01/20/2012 - 11:57 | 2081139 Dr. Engali
Dr. Engali's picture

Or maybe somebody who played the cards that were dealt him and was able to turn it into a winning hand.

Fri, 01/20/2012 - 12:40 | 2081306 Caviar Emptor
Caviar Emptor's picture

@Law of Physics: desparate old man who has benefitted from the rape of productive labor and near the end of his life wants to redeem himself by "calling out" all the same gimmics that made him rich.

You mean like Uncle Warren? Strumming his way into the hearts of sheep, and sending money to the US Capitol under the guise of "Fixing the deficit", when all the while it really is exactly what it appears to be : another bribe to politicians, money they can pork on to their cronies who'll kick it back 

Fri, 01/20/2012 - 13:50 | 2081550 trav7777
trav7777's picture

careful...you just gored a ZH sacred cow

Fri, 01/20/2012 - 19:18 | 2082683 akak
akak's picture

Happiness is being first to junk a stupid Trav comment.

(and they are almost all stupid --- that is, if they are not also racist, and/or hysterically silver-bashing)

Fri, 01/20/2012 - 11:43 | 2081087 Badabing
Badabing's picture

I love the way Faber says bubble.

Fri, 01/20/2012 - 12:12 | 2081213 KlausK
KlausK's picture

I'm here to prrotact yoo!

Fri, 01/20/2012 - 12:46 | 2081326 fonestar
fonestar's picture

Faber would have made an excellent Goldfinger.

Fri, 01/20/2012 - 12:03 | 2081158 true brain
true brain's picture

This is the only guy that admits he was wrong on the air. That's why I listen to him. Very few others do. He talks like a normal person. the rest of the economic bs pundits talk like they're psychopath- never wrong, never a morsel of regret or reality. BTW, he predicts s&p decreasing to 1000 in march to june this year, so load up on the short. then QE3 will be here right after that.

Fri, 01/20/2012 - 13:40 | 2081460 baby_BLYTHE
baby_BLYTHE's picture

I am not sure why everyone says he got it wrong on treasuries. I distinctly remember a video Bloomberg interview with Faber posted late 2010/early 2011 by Tyler saying he got a buy signal on US treasuries and he expected a rally to commence sometime early in 2011. He probably didn't expect the yields to plunge as low as they did that is why he says he owes Rosenberg a bottle of whiskey. Also in that interview before the start of 2011, he  said S&P would fall about 15% and gold about 20% before bouncing back, which he also accurately predicted.

Fri, 01/20/2012 - 12:19 | 2081219 WestVillageIdiot
WestVillageIdiot's picture

He sounds like General Buckhalter off of Hogan's Heroes.  I would love to hear him say, "Klink, you are an idiot".  That would be awesome. 

And for god's sake, somebody buy him a monocle.  He needs a monocle.

Fri, 01/20/2012 - 13:06 | 2081399 Joe Sixpack
Joe Sixpack's picture

I guy with 20-20 vision does not need corrective lenses.

Fri, 01/20/2012 - 15:15 | 2081902 vato poco
vato poco's picture

"Get that guy a monocle". LOL 

I don't care who y'are, that's some funny shit right there. Maybe add a dueling scar, too.

Fri, 01/20/2012 - 16:29 | 2082205 blunderdog
blunderdog's picture

I like the top-hat and pince-nez look, myself.

Fri, 01/20/2012 - 12:25 | 2081258 Gully Foyle
Gully Foyle's picture

Much like every Psychic, they can see it but can't give you specifics like date and time.

First fucker with exact date and time for ANY collapse should win everyones respect and never be questioned again.

Fri, 01/20/2012 - 13:03 | 2081390 Alea Iactaest
Alea Iactaest's picture

That fucker should be relentlessly questioned until he does it 2x in a row, imho.

Fri, 01/20/2012 - 12:46 | 2081332 Chief KnocAHoma
Chief KnocAHoma's picture

The sky is falling... no really I mean it this time....the sky is falling. A wolf is coming. The end is nigh.

I have been hearing the same shit for 10 years now. Granted the screams have been getting louder and more main stream in the last three years, but a melt down mad max world is not headed our way.

Trouble and change ... yes, but we'll get through it and the smart ones will make money on the path.

Fri, 01/20/2012 - 12:54 | 2081361 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You must not know that finite resources are being depleted

Fri, 01/20/2012 - 13:54 | 2081570 trav7777
trav7777's picture

no...YOU don't get it.

Crashes and collapses take far longer than your pathetic human attention span...even your pathetic human LIFEspan.

They take a lot less to read about than they take to happen.  We're IN what will be referred to in the future as a crash or collapse.  But it's not going to just be one MOMENT where suddenly everything goes poof.

It will be a slow decline.  In 10 years, you will look around you and if you can, remember how much you recall things having been better 10 years prior.  And that reduction by whatever percent in your lifestyle will be the crash.

Even the GD was over 10 years.  Collapses, panics, etc., in history, 2, 3, 5, 10, 20 years. 

Fri, 01/20/2012 - 14:43 | 2081747 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

So when did this one start then?

Was it when world oil production peaked in 2009?  Was it when the US cratered sound money policy in 1971 by closing the foreign gold window?  In 1933 when the domestic gold window was closed?  1913 when the Federal Reserve took control of monetary policy in the interest of the Private Banking Houses?

Was it in the 19th century when the Supreme Court established corporate personhood?  Was it in !987 when the PWG was established to control the markets?  Was it when gold, the collateral for all Central Bank bank balance sheets, peaked production in 2000?

Pick your poison Trav.  The collapse is long in the tooth.

Fri, 01/20/2012 - 23:45 | 2083302 falun bong
falun bong's picture

If you ask me it started in 1980, the year they shot John Lennon and elected Ronald Reagan.

Fri, 01/20/2012 - 13:20 | 2081443 Captain Kink
Captain Kink's picture

Chief, I think Faber would agree that we will get through it...the world will not end and the human race will go on, of course... "Trouble and change" is just a matter of how much trouble and how much change.  Yes, one can make money in a variety of ways through all of it, though making money may not be the most important thing when "trouble" comes to bear. 

Put it like this:  We are all fisherman and there is a storm on the horizon. Even the most aggressive fishing boat captain should worry not at all about the size of his catch when making it back to port is the real issue for himself and his crew...

Fri, 01/20/2012 - 13:55 | 2081575 trav7777
trav7777's picture

nah...it's more like erosion than a storm.  Storms are sudden...this isn't.  This is a developing situation.  Things will eventually fall down suddenly, but the entire neighborhood or town isn't going to erode away at once.

Fri, 01/20/2012 - 13:09 | 2081411 Ruffcut
Ruffcut's picture

Wait til I come out with my grit, spit and shit report.  "3 years, 5 years" bla bla bullshit. Might as well say 10 years, 20 years and some of us will be dead by then. guy's a windbag.

Fri, 01/20/2012 - 15:11 | 2081874 vato poco
vato poco's picture

Hmm. Well, *I* think Faber's just great, but maybe that's me being all gullible and shit. If you really think the guy's a "blah blah bullshit windbag", nothing's stopping you from loading up on Treasuries, right? Going all in? Just fade the bullshit windbag guy and watch the cash roll in?

So, are you all in on Treasuries?

Fri, 01/20/2012 - 11:25 | 2081035 Bay of Pigs
Bay of Pigs's picture

BBB (Bond Bubble Bitchez).

Or is that the new rating on US debt?

Fri, 01/20/2012 - 11:26 | 2081036 Irelevant
Irelevant's picture

The Bureau of the Public Debt is an agency within the Fiscal Service of the United States Treasury Department. Under authority derived from Article I, section 8 of the Constitution, Public Debt is responsible for borrowing the money needed to operate the federal government, and is where donations to reduce the debt can be made.

Care to donate? 

Fri, 01/20/2012 - 11:28 | 2081043 DollarDive
DollarDive's picture

FED Swap Line Activity Increased Significantly over the past week ;   http://displacedema.blogspot.com/

 

Fri, 01/20/2012 - 11:32 | 2081052 lynnybee
lynnybee's picture

... luv Dr. Faber, he's super.    even in the face of an interview like this, my friends & family just don't believe that the whole thing will collapse.     How can you argue with the man !     Dr. Faber said that when we go into our monetary reform that $100 of the old money will get you just $1 of the new money.    He may be depressing, but, at least he's a realist.

Fri, 01/20/2012 - 11:33 | 2081053 Dr. Engali
Dr. Engali's picture

I love how they frame the question " If you had to hoose between investments ,U.S governenment treasuries or let's say Spanish bonds, which is the better investment?  I would have said neither dipshit. I may be early but I will be proven right. The move in the 10 year is interesting.

Fri, 01/20/2012 - 11:33 | 2081054 disabledvet
disabledvet's picture

"As long as we can kick this can in their balls Mr President we can kick this can down the road as well."

Fri, 01/20/2012 - 11:35 | 2081063 Surly Bear
Surly Bear's picture

I <3 Mark.

Fri, 01/20/2012 - 11:35 | 2081064 RobotTrader
RobotTrader's picture

What a joke.  Did Faber predict the huge runs in restaurant stocks the last 3 years, with MCD and EAT making 52-week highs today?

Nope.

Did he stand aside during the greatest Treasury and Muni-Bond rally in history?

Nope.

Does any "respected" expert on reading the health of the stock market wear pink ties and sweaters?

Nope.

I like Faber, he's an interesting dude.  But I would never make trading decisions based on anything he says.

Fri, 01/20/2012 - 11:42 | 2081080 Miss Expectations
Miss Expectations's picture

I think you should slip into something pink.

Fri, 01/20/2012 - 11:43 | 2081086 RichardENixon
RichardENixon's picture

"I like Faber, he's an interesting dude.  But I would never make trading decisions based on anything he says."--   Note to self: start making all trading decisions based on what Faber says.

Fri, 01/20/2012 - 11:45 | 2081088 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He has been long US equities as long as I can remember.  He called the bottom in the spring of '09.  I don't know what you are freaking out about.

Fri, 01/20/2012 - 11:45 | 2081097 Bay of Pigs
Bay of Pigs's picture

I doubt he's listening to your advice either.

Nope. 

Fri, 01/20/2012 - 12:09 | 2081188 Temporalist
Temporalist's picture

I don't think Jim Rogers is knocking on DodoTrader's basement door either - who he bashed just recently.  Wouldn't everyone rather be RubeOMeter than uber wealthy Jim Rogers or Marc Faber?

Fri, 01/20/2012 - 11:55 | 2081114 njdoo7
njdoo7's picture

You should never make trades based on anything anyone says.  You should make trades based on information at hand, and how valid you believe that information to be. 

People today seem to want to outsource their thinking to other people, and base their assessment determining whether someone is black or white (credible or non credible).  Personally, I listen to what most anyone says and then judge for myself how accurate I believe they are.  I don't pigeon hole them into "listen to" or "ignore."

 

Are there specific pieces of information and statistics Faber cites that you have issue with? 

The color of his tie and his non-involvement in certain sectors are irrelevant to the topic at hand.

Fri, 01/20/2012 - 12:02 | 2081153 BigMike
BigMike's picture

Hey Robot Trader,

 

You don't have a fuckin clue dude.  Check out this Marc Faber interview from a year ago:

 

http://www.zerohedge.com/article/marc-fabers-most-provocative-interview-ever-compares-obama-prostitute-goes-long-treasurys

 

Dumbass.

Fri, 01/20/2012 - 14:33 | 2081239 Temporalist
Temporalist's picture

And the can is still being kicked:

 

Faber - On all the current batch of Davos participants:

I dont think the 'thinkers' are in Davos. I think it's a group of liars, and people that go along with the system, and perpetuate fraud and abuse, and dubious practices in the financial system.

*edit - I meant to include that Davos will soon be here. The liars, bankers, politicians, PhD economists, financial media whores and other related scum have already secured their bungalows

 

Fri, 01/20/2012 - 12:03 | 2081155 bnbdnb
Fri, 01/20/2012 - 12:41 | 2081313 Spigot
Spigot's picture

Robo, the guy is a fucking BILLIONAIRE. He does not invest in restaurant stocks. Pull your head out of your oriface.

Fri, 01/20/2012 - 12:56 | 2081366 Ratscam
Ratscam's picture

he is not, but surely lives a good life with booz and hookers ....

Fri, 01/20/2012 - 13:01 | 2081376 Spigot
Spigot's picture

Not that you can tell, but why would he let you know?

Fri, 01/20/2012 - 13:13 | 2081419 Ratscam
Ratscam's picture

i know him and his family.
trust me he would fly private if he were a billionaire

Fri, 01/20/2012 - 14:58 | 2081829 viahj
viahj's picture

trust a Rat? 

Fri, 01/20/2012 - 20:17 | 2082883 Ratscam
Ratscam's picture

touche

Fri, 01/20/2012 - 12:48 | 2081341 cranky-old-geezer
cranky-old-geezer's picture

 

 

Did Faber predict the huge runs in restaurant stocks the last 3 years, with MCD and EAT making 52-week highs today?

Nope.

You didn't either, so shut the fuck up.

Fri, 01/20/2012 - 13:14 | 2081423 Minyan Vince
Minyan Vince's picture

that's because he makes macro calls and investment decisions...

Fri, 01/20/2012 - 13:21 | 2081452 mr_T
mr_T's picture

He called the march 2009 almost to the day. It encouraged me to go long that week. If only I just held for two years.. I need time machine like on that movie PRIMER.

Fri, 01/20/2012 - 13:31 | 2081488 pods
pods's picture

Not really sure you can call MCD a restaurant there Robo.

pods

Fri, 01/20/2012 - 14:36 | 2081728 Temporalist
Temporalist's picture

When it's the classiest joint you can afford, like it is for HoboShaver, then it's like the Four Seasons.

Fri, 01/20/2012 - 13:44 | 2081508 mr_T
mr_T's picture

The economist I know who likes to talk about Thai hookers . Remimds me of the Man with the golden gun villan but nicer..

Fri, 01/20/2012 - 11:38 | 2081070 Hippocratic Oaf
Hippocratic Oaf's picture

Bloomberg.......the REAL financial news outlet.

CNBC.........cheerleaders and fools.

Fri, 01/20/2012 - 11:42 | 2081077 Reese Bobby
Reese Bobby's picture

I think Bloomberg is worse than CNBC but it is a race to the bottom.  Bloomberg News: "All news is good news"

Fri, 01/20/2012 - 12:11 | 2081109 hedgeless_horseman
hedgeless_horseman's picture

 

 

Bloomberg News:
"All news is good news,
All jews is good jews."

Shalom, Mr. Mayor!

 

 

Disclosure statement:  I am not anti-semetic; my boss is a Jewish carpenter.  I am of the belief that the vast majority of New Yorkers and Americans simply do not connect the politician with the media mogul. He does make a great product and seems to have done a good job as mayor.  The media does not pay nearly as much attention to Bloomberg's jewish belief as they do to Ron Paul's Christian belief.  I wonder why?

Fri, 01/20/2012 - 12:23 | 2081256 Hippocratic Oaf
Hippocratic Oaf's picture

I am a New Yorker and I do connect the mogul with the politician. Rudy cleaned up the city when it needed a cleaning. Bloomy has made the city a nanny state by upping it just one more. He's got his cronies and opinions in everything. New York is too clean now. And don't get me started on the bike lanes. But he does have a great product that I use every day. 

As for which service is better? Maybe there's not much diff tween Bloomberg and CNBC. It's Lies-man and lil cramer that push me over the edge.

Fri, 01/20/2012 - 12:30 | 2081271 Reese Bobby
Reese Bobby's picture

It is Bloomberg News I can't stomach.  The data Bloomberg is a great product, so I agree with your clarification.  And I enjoy getting cabbies going on bike lanes.

Fri, 01/20/2012 - 12:35 | 2081287 GeneMarchbanks
GeneMarchbanks's picture

Hildebrand, Blankfein & Bass have been talking 'God' lately. When financiers talk God then you know you're close...

Fri, 01/20/2012 - 12:38 | 2081305 Reese Bobby
Reese Bobby's picture

Your boss may be ashamed of you.  Personally, I would beware his wrath.

Fri, 01/20/2012 - 12:52 | 2081310 hedgeless_horseman
Fri, 01/20/2012 - 11:42 | 2081081 Dr. Engali
Dr. Engali's picture

They sure sounded like they where chearleaders for U.S tocks and treasuries to me. The only real news I heard was from Marc.

Fri, 01/20/2012 - 11:42 | 2081085 poor fella
poor fella's picture

Although Sara Eisen looks like she's going clubbin'  -  not usually made up quite so kittenish.

Fri, 01/20/2012 - 11:53 | 2081121 BigMike
BigMike's picture

She does! Hahahah.  BBG needs to get her off radio and on TV, my god.

Fri, 01/20/2012 - 11:40 | 2081072 Reese Bobby
Reese Bobby's picture

Pink see-through sweater?  Just disturbing.

Fri, 01/20/2012 - 11:49 | 2081107 Instant Wealth
Instant Wealth's picture

Condom rosé seems to be the colour of the season in Zurich.

Fri, 01/20/2012 - 11:42 | 2081082 BigMike
BigMike's picture

OMG Sarah Eisen.  These women are so damn hot.

Fri, 01/20/2012 - 12:04 | 2081161 Normalcy Bias
Normalcy Bias's picture

Bonerz = Ratingz

Fri, 01/20/2012 - 11:43 | 2081091 loveyajimbo
loveyajimbo's picture

Sounds like Sgt. Shultz... he does have a good macro view... and I agree that we are heading for a disaster... but suggesting equities?  Now?  I see a deflationary bust prior to the big printing that will come after... and stocks will get hammered...

 

But with no funny accent, my opinion is muted...

 

 

 

Fri, 01/20/2012 - 12:30 | 2081269 Quinvarius
Quinvarius's picture

There is no such thing as deflation in a debt backed fiat currency.  Especially when there is this much debt.

Fri, 01/20/2012 - 13:36 | 2081503 pods
pods's picture

Would really love to hear the logic behind that statement.

pods

Fri, 01/20/2012 - 11:52 | 2081122 Everybodys All ...
Everybodys All American's picture

It's all about optics. Ever wonder why when there is very little activity any longer on the floors of the exchanges that the networks have to be seen there as if the whole world is centered at the exchange? Call me jaded on the whole mess.

Fri, 01/20/2012 - 11:53 | 2081123 BullyBearish
BullyBearish's picture

BULLS love to squeeze BEARS.  BEARS love to stomp on BULLS.  Slow melt up versus waterfall down.  For those willing, which is easier to predict/play?

Fri, 01/20/2012 - 11:53 | 2081124 balz
balz's picture

Faber's balls are made of pure steel.

Fri, 01/20/2012 - 14:38 | 2081741 Temporalist
Temporalist's picture

I have to think that he would have chosen a better investment metal than that to have his balls made from.  Perhaps platinum coated with titanium?

Fri, 01/20/2012 - 11:54 | 2081128 Snakeeyes
Fri, 01/20/2012 - 11:56 | 2081134 evolutionx
evolutionx's picture
Baltic Dry Index: Collapse

Baltic Dry Index loses more than 50% in 2 months. Close to its alltime low. Now under 1000. This does not mean any good to the world economy. See two different charts of the collapse during last three months.

 

 

More:

http://www.webcompact.net/index.php/news/5962-baltic-dry-index-collapse


Fri, 01/20/2012 - 13:16 | 2081441 walküre
walküre's picture

real economy = real data

One government can't fudge the BDI which is reflective of international trade.

Fri, 01/20/2012 - 11:56 | 2081136 yogibear
yogibear's picture

The Federal Reserve Keysian androids will just keep monetizing and debasing the US dollar. Especially now pratically all on the Federal Reserve board will just want to keep printing.

Marc Faber is correct. Get out out of the US dollar while you can because the Federal Reserve will abuse the US dollar's reserve currency status until it's taken away by the rest of the world. Wall Street cry babies keep asking for more candy and the Federal Reserve keeps giving them their candy. 

Countries that have assets the rest of the world wants, such as oil, should start pricing them in something other than US dollars. The Federal Reserve's answer is just to keep printing because that's all they can do.

With current obligations, hyperinflation is the only solution and the US federal Reserve is well aware of how they will reduce their debt. They attemt to do a controlled burn of the dollar. Once people wake up to the Federal Reserves's plan they will be dumping US dollars in droves.

Countries at some point won't accept US dollars for payment and the dollar is dead at that point.

 

 

Fri, 01/20/2012 - 12:18 | 2081236 Calmyourself
Calmyourself's picture

Those countries would do that if they could but they cannot, 11 carrier battle groups, eleven..

7 marine expeditionary units, seven.

One thing I agree with most of you on, this is all going to end very badly, we can go back and forth on the timing but it will absolutely end badly for all concerned at some point 3,5,10 years who knows but not tomorrow..

Fri, 01/20/2012 - 12:31 | 2081272 WestVillageIdiot
WestVillageIdiot's picture

I saw that and was going to comment on it, too.  It is just not that easy to stand up and say, "I'm not taking your dollars for my oil any longer".  It is easy to tell a little kid, "just tell that bully that he can't have your lunch money anymore".  The little kid would probably look at you and reply, "what the fuck?  Have you seen the size of that kid?" 

And the military worship in the U.S. gets stronger and stronger.  Just try to question the military in a group of people that you know.  See how quickly they call you "unpatriotic" or worse.  Their P.R. campaigns have worked wonders the past 30 years. 

Fri, 01/20/2012 - 12:03 | 2081152 CrashisOptimistic
CrashisOptimistic's picture

 

It's hard to think in terms of destroyed Treasuries when the Fed can buy all it wants to.  That's a guaranteed bid.

If GDP stayed at 1-2%, unemployment at 8.5-9% and oil $100, do you think Bernanke would tolerate a 6% 30 year Treasury?  Of course not.  He'd buy hand over fist.

Think that would cause inflation?  Price freezes could be enacted by decree.  Anyone refusing to provide product at a frozen price could have their family jailed.  They will do ANYTHING to keep the juggled balls in the air.

The only thing that can stop this is things the government cannot control, and what we've learned in the past few years is there isn't much in that category.

Fri, 01/20/2012 - 15:13 | 2081889 Calmyourself
Calmyourself's picture

Exactly the balls will be kept in the air over rule of law, regulators anything and anybody will be steamrolled to keep it going.  Now extrapolate that out, now how long can this go on.. Don't forget no law, no contract, no press and agitators jailed, all supported by miliions of dipshits, that changes the timeline doesn't it.  Now tell me why this is wrong. 

Hunger only hunger..

Fri, 01/20/2012 - 12:06 | 2081175 dynamictrader
dynamictrader's picture

The best part..... i fell off the chair...... lol...... 

 

"repeats it over... and over... and over, like a man possessed, if ultimately 100% correct." and he annouces, he is not in Thailand.... lol

Fri, 01/20/2012 - 12:06 | 2081182 Calmyourself
Calmyourself's picture

He has panache no doubt, but 3,5,10 years is what, actionable as it is certainly not news?  This is repetitive but none of these guys are discussing the true problem it is politics not economics.  The system has been dismantled before our eyes and treasury yields, bond vs equity, liquidity discussions are all dancing around the real issue.  Millions of dumb founded dipshits in complete denial about the basic tenets of their economies and political systems.

Fri, 01/20/2012 - 12:08 | 2081187 banksterhater
banksterhater's picture

FABER IS ONE JACKASS! If everything implodes, so does your brokerage account, there will be no access to electronic trading, it will be overwhelmed and GDAmeritrade won't allow you to sell stocks and money markets break the buck, this ASSHOLE can go fuck himself!

Fri, 01/20/2012 - 12:09 | 2081190 dynamictrader
dynamictrader's picture

So, brothers, what should we expect for the dow tonight, will the greece story bring about a pop or top? for the markets recent upmove. 
Will it end today, shall the reset start tonight?, is it tonight? 

Fri, 01/20/2012 - 12:09 | 2081193 Towgunner
Towgunner's picture

That chick is killing me, otherwise I enjoy listening to Faber.

Fri, 01/20/2012 - 12:09 | 2081194 Towgunner
Towgunner's picture

That chick is killing me, otherwise I enjoy listening to Faber.

Fri, 01/20/2012 - 12:09 | 2081197 lynnybee
lynnybee's picture

did everyone notice how many coments have the word  "love"  in them ? !    WE LOVE THIS GUY !    I could listen to him all day & I actually understand him.    Most of my (dumb-dumb) friends don't have a clue as to who he is or what the hell is coming our way.    BUY AS MUCH SILVER & GOLD & FOODSTUFFS as you can lay your hands on !    Don't throw any of your clothes or household goods away, you might not be able to get it back due to higher prices or shortages ....... STOCKPILE, PEOPLE, STOCKPILE !!!

 

Fri, 01/20/2012 - 13:16 | 2081440 RiverRoad
RiverRoad's picture

Love his chuckle.

Fri, 01/20/2012 - 12:18 | 2081240 FoieGras
FoieGras's picture

Sorors was short the Nasdaq until November 1999 and was getting killed. He knew it was a short but he also knew it was a bubble. So he went long, rode it up till March 2000, made back his losses from his previous short and *THEN* went short and rode the pig down all the way into 2001.

Faber is not a trader. But he needs to realize that something can be a buy even though it has shit fundamentals. Nobody in their right mind thinks 30 year bonds are a great 30 year investment.

Still: they can be a great trade from the long side every once in a while.

Fri, 01/20/2012 - 12:26 | 2081257 dynamictrader
dynamictrader's picture

Soros turned long, before the mar dot com bust, and so did tiger fund and warren buffet, all who were 

against tech, went long on tech, just before it turned. thats my recollection. correct me, if i am wrong. 

 

In fact he lost about 8B of his funds money, when the nasdaq bust and had to close that fund.

thats what i recollect. He never went long and made money, he gave up on his shorts early. 

Ain't how a bear plays, does it? 

 

Fri, 01/20/2012 - 12:19 | 2081243 TheGardener
TheGardener's picture

Why should someone who gets quoted with " being
bisexual doubles your chances of a date on a Saturday night? ..." not wear a pink tie ?

Fri, 01/20/2012 - 12:33 | 2081282 s2man
s2man's picture

Bubbles, bubbles.  Credit and housing partially deflated, but they are still being held up by the stock, USD and TSY bubbles.  When all of those bubbles finally pop, the last safe haven will be gold.  Folks will run to it to try to preserve what is left of their wealth, creating the biggest, baddest bubble ever.

Who said, "If you didn't buy gold at $1500, you will at $3000"?

Fri, 01/20/2012 - 12:48 | 2081338 tocointhephrase
tocointhephrase's picture

You have to ask yourself, how much would the rich pay to protect their wealth? 

Fri, 01/20/2012 - 12:38 | 2081299 847328_3527
847328_3527's picture

Marc needs to look at what Wall Street calls, 'the birght side'...

remember the Fuki disaster?...many on Wall STreet said that destruction was "very bullish" for the Japanese GDP.

Here is more "bullish news' according to Wall Street:

Fri, 01/20/2012 - 12:45 | 2081324 Captain Kink
Captain Kink's picture

Silver crossing the 50-day (simple and exponential) with conviction today.... if it holds, fasten your seat belts.

Fri, 01/20/2012 - 12:49 | 2081343 tocointhephrase
tocointhephrase's picture

Bottoms up!

Fri, 01/20/2012 - 12:49 | 2081342 duckhook
duckhook's picture

Mr Faber sometimes makes hyperbolic remarks.but there is no denying that the treausry Market is in a bubble both in term of time,over 30 year  and in terms of price ).Never in the history of the country has our deficit problem looked worse.We are starting off from a huge base ,but debt after ww2 was even higher.The demographic  problem is set in stone,even as benefits go down.There are still off balance sheet items that will only make the situation worse.

Do not forget that Greek debt was trading at only a small premium to that of Germany as late as dec,2009.By may of 2010,it was trading at a much higher premiun to that of Germany

In every bubble,it looks as if prices are going to stay high forever.Well bulls they do not

Fri, 01/20/2012 - 12:50 | 2081349 Benedict Farse
Benedict Farse's picture

Marc Faber - from the god of war a craftsman.

Fri, 01/20/2012 - 12:52 | 2081351 tempo
tempo's picture

Most do not believe Government bonds are risky and dangerous. Governemnt bonds and interest will only be repaid/paid over time if the citizens vote to either cut entitlements or raise taxes. Thats the risk.

Fri, 01/20/2012 - 12:56 | 2081368 Caviar Emptor
Caviar Emptor's picture

Faber is a great guy and smart. He suffers from one key bias that creates a blind spot: he's modeling the future based on the past, in particular the past horrors of monetary policy gone wild last seen in Weimar in the 1920s. He mentions it often and uses that example to back up his contentions, especially with regard to equities. 

Here's the problem. He's fervently postulating imminent hyperinflation. And many others are just as fervent about deflation. And the irony is that both are right. As I've abundantly documented on these pages, we have now overwhelming evidence of both existing simultaneously. The confirmatory data now shows up on a daily basis. It's Biflation

Central banks including the Fed, economists and big biz brains can't get their head around biflation. Because in their minds it can't exist. If it did, their training, education, dogma, belief systems and yes their careers would be negated. They have a vested interest in disbelief. So they've interpreted Biflation as a Goldilocks situation because inflation and deflation pulling in opposite directions make the traditional metrics like CPI cancel to zero. As we just saw this week. And they take credit too :-) And so they'll pursue their current bifaltionary policies to the max as time goes on and always tell you "there's no inflation!". And that will make poor Marc Faber look crazy and wrong, but only by half. 

 

Fri, 01/20/2012 - 13:05 | 2081394 riphowardkatz
riphowardkatz's picture

I think you suffer from bad defintions and I much prefer Fabers understanding of prices because it is connected to reality.

You cannot simultaneously have inflation (increase in price of goods caused by more money AND deflation decrease of prices caused by less money) They are mutually exclusive.

Biflation is a floating abstraction with no possible connection to reality. Some prices can go down in an inflationary environment but the cause is NOT more money. The cause is fear or margin compression or something else it is not from there being less total available dollars.

Fri, 01/20/2012 - 13:16 | 2081431 Joe Sixpack
Joe Sixpack's picture

When you start talking about biflation, it means the theory has collapsed. It is menaingless. When you can create money on a computer, everything just hovers around a mena value, and everything else self adjusts to maintain that mean value. The computers and algos will force that. Unfortunately, at some point that mean value becomes meaningless, then all hell breaks loose.

 

It is like cosmology. When the big beng went bust, they invented inflation to explain it. Now they saw a supernova expand faster than the speed of light, so we have to have infinitie (unverifiable) multiverses to keep the standard model together. Establishments cannot change their stripes, so they keep shoe horning the same data into modifications of the stripes. Until they can't anymore.

Fri, 01/20/2012 - 13:36 | 2081498 Caviar Emptor
Caviar Emptor's picture

I'm glad you disagree. Keep on reading the economic data and you'll begin to weep as you'll see more and more evidence coming out every single week that , yes Virginia, there really is Biflation. And I'll be on it. Clue: To understand biflation you have to resolve not to limit the universe of your understanding to a simplisitic "more money/less money" dichotomy. There are other economic forces in teh world, some we're just beginning to undersand. One thing we can agree: the law of unintended consequences pervades everything, including monetary policy

Fri, 01/20/2012 - 15:07 | 2081864 riphowardkatz
riphowardkatz's picture

Haven't limited my universe to anything except to appropriately using words  so I can get a better understanding of the world, I do not disagree that there are many other economic forces, I pointed out quite a few.

Prices of some things even most things going down can correlate with inflation but those prices are not deflating they are going down because of some other cause. It is important to identify the cause and then name it properly so that you can distinguish it and understand its relation to other phenomena. Some possible causes could include increased productivity, fear, demand destruction or misallocated capital and credit destruction.  Mislabeling the aforementioned causes is not a sign of an expanded universe but it is a sign of sloppy thinking.

I do like to imagine a balloon or a bike tire biflating it is actually pretty entertaining to try and invision it. 

Fri, 01/20/2012 - 15:46 | 2082036 Temporalist
Temporalist's picture

Since the common metaphor is a baloon perhaps that is a better symbol to imagine. Think that the economy is that baloon and the one side has a hose pumping air in, there is a twist in the middle preventing air from reaching the other side (this would be the "knot" the global economy is in) and then there is a hole deflating the far side that doesn't have the hose.

Is that easier to picture?

Fri, 01/20/2012 - 13:05 | 2081373 Votewithabullet
Votewithabullet's picture

strange...yesterday his cnbs interview was all about the stocks NOT CRASHING. fucking quote" no reason to believe stocks will crash". fuzzy fucking foreigner

Fri, 01/20/2012 - 13:02 | 2081382 wharfdaddy
wharfdaddy's picture

Wrote Tommorrows GOLD in 2002...How Prescient.. and here is my favorite quote:

 

"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 Mexico, Honduras 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."

 

Fri, 01/20/2012 - 13:05 | 2081398 Captain Kink
Captain Kink's picture

Priceless!

Fri, 01/20/2012 - 13:03 | 2081388 vegas
vegas's picture

Nothing like a guy with an opinion. However, the fact that government can always change the rules to their benefit should prompt you to ask the question, "What could possibly go wrong here?"

 

http://vegasxau.blogspot.com

Fri, 01/20/2012 - 13:05 | 2081396 Texas Ginslinger
Texas Ginslinger's picture

Krugman says massive public debt is ok, because we owe it to ourselves.

http://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html?_r=1

Fri, 01/20/2012 - 13:10 | 2081416 the grateful un...
the grateful unemployed's picture

Reagan said that, Krugman is violating Internet piracy laws

Fri, 01/20/2012 - 13:17 | 2081438 NoTTD
NoTTD's picture

SOPA his ass.

Fri, 01/20/2012 - 13:21 | 2081446 hedgeless_horseman
hedgeless_horseman's picture

 

 

California congressman Pete Stark owns the opinion on the internet that, "the more we owe the wealthier we are."  If you have never watched this, it is a must see video:

http://www.youtube.com/watch?feature=player_detailpage&v=UjbPZAMked0

Fri, 01/20/2012 - 13:31 | 2081486 Texas Ginslinger
Texas Ginslinger's picture

Using Stark's logic you could then say that a morbidly obese American is healthy because they are carbohydrate rich.. 

Fri, 01/20/2012 - 14:56 | 2081814 lynnybee
lynnybee's picture

Krugman says massive public debt is ok, because we owe it to ourselves.  ....well, if we owe it to ourselves, then, let's not pay ourselves back.    idiot Krugman !    

Fri, 01/20/2012 - 15:52 | 2082057 blindman
blindman's picture

that is the plan, only pay the interest and
never pay the principal.

Fri, 01/20/2012 - 13:08 | 2081408 the grateful un...
the grateful unemployed's picture

he hits the nail on the head, buy equities, because bonds will government will default? sure, the stock market is like taking the rent money out to the indian casino to see if you can double up. imagine this they have destroyed the corn market through manipulation and bad management, so buy whiskey!

Fri, 01/20/2012 - 13:14 | 2081424 blindman
blindman's picture

Nouriel Roubini, Ian Bremmer on Economy, Risks
http://www.bloomberg.com/video/84608720/
.
n.r. says credit event is inevitable 03/20/2012.
in other news , j.p. morgue currently attempting to
set precedent in courts for stealing money from
segregated accounts, deposit accounts as of secondary
or less status to the claims of cds loaded creditors.
see max interview with Warren E. Pollock here.

[KR238] Keiser Report: Scam On Epic Scale
Posted on January 19, 2012 by stacyherbert
http://maxkeiser.com/2012/01/19/kr238-keiser-report-scam-on-epic-scale/
.
who will find out that they really didn't understand the terms
they were using, their trust was misplaced and their "money"
is gone? " and ... it's gone ... ah what?
the money you had in the bank, it's gone."
South Park vs. Cafe Del Mar - And It's Gone (Johannes Dahlberg Financial Crisis Mash)
http://www.youtube.com/watch?v=4TlPo0yCSa4
.
never gets old, just when i thought they had that euro problem
all isolated and whatnot. this when we leave it to the best and
brightest and self interested. guess what, they steal everything
and then kill everyone. that's their plan. the money system demands
it, don't blame them, their just doing god's work. sometimes they
mash it up and kill everyone and then steal everything, either way
they command/demand your respect.
war games, financial war, online gambling issues; i think i've
seen enough. chow

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