Faber: "It will all end in disaster"

Dr. Doom takes steps to counter his recently growing reputation as a stock market bull. Marc Faber, publisher of the Gloom, Boom and Doom Report, talks with Erik Schatzker about the prospects for equity markets and recent actions by the Fed and Treasury Department.

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On whether Ben Bernanke has redeemed himself and what that means for stocks:

I do not think so. On the contrary, I think what the government is doing and its economic "dream team" under Mr. Bernanke and Mr. Geithner and Mr. Summers are going to be, from a longer term point of view, rather negative.

But, you understand, we can all sit here and say it will all end in disaster. That I'm sure. But, in the meantime, we can have big moves in markets.

On the new bad assets purchase plan:

I think he's doing the right thing from a very short term perpective. If you have cracks in your walls and just put paint on it, it will hide them and then you sell your house. But it won't solve the problems of the cracks - it's the next owner and these are the children of the current taxpayer who will pay for it.

Here's the summary from Bloomberg:

00:00 Stock rally "may have some more legs."
01:26 Potential for S&P 500 at 880; volatility
02:21 Treasuries; U.S. response to crisis
04:10 Treasury's bank-rescue efforts