Marc Faber joins Bloomberg TV to discuss the economy and the markets, his economic outlook leaving little in the way of holiday cheer. According to Faber, "we are faced with a global recession that will last a very long time", and 2009 will be catastrophic for the global economy.
Faber also uses this opportunity to once again remind viewers that the problems we face are a direct result of previous government and central bank interventions into the economy.
As Marc points out, loose US monetary policy and a series of bailouts led to a marked increase in leverage and risk taking in the financial world. Had the policy makers not intervened to bailout failed hedge funds (LTCM) and countries (Mexico), market participants would have been much more careful, knowing that poor decision making and failure have consequences.
Plenty more to hear, as Marc offers his views on investment valuations, corporate earnings, commodities, Asian stock markets, mining shares, and Ponzi schemes. Enjoy the interview.
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