Tuesday, January 06, 2009
Another good interview with Dr. Marc Faber, this one over at Bloomberg where he's been a regular for many years (recent appearances at the likes of CNBC are somewhat unusual as he tends to go against conventional wisdom, something that abounds at CNBC).
There's lots of good stuff in this one - the outlook for the global economy, oil, gold, base metals, natural resource stocks, World War III having already started...
On the subject of alternatives to the government solutions for the current problems, he was asked how he expected the populace to stand for the government doing nothing?
That's the problem of society. If people can not accept the downside to capitalism, then they should become socialists and then they have a planned economy. They should go to eastern Europe twenty years ago and to Russia and China for the last 70 years.How do you tell that to somebody in Detroit who's losing his home today?
Why is he losing his home? Because of government intervention. The government - the Federal Reserve - kept interest rates artificially low and created the biggest housing bubble, not just in the U.S. but worldwide. That is what I'd explain to the worker in Detroit.