Video: Marc Faber on CNBC's Squawk Box Europe -- June 17, 2010
We have both clips from Faber's appearance last week, plus transcribed quotes. Outstanding interview, unless of course you prefer to invest in Federal Reserve debt-pretend bubbles, in which case the truth from Dr. Doom is gonna hurt.
Second video is below the quotes.
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Source: CNBC
- "Governments have intervened too much in free markets since the crisis started, to the point that they are affecting the health of the world economy."
- "I think that governments have become like a cancer, they have expanded in the financial system."
- "I think the biggest problem is too much intervention. Whatever the government touches is usually done worse than in the private sector."
- "I think any government intervention has unintended consequences and is negative," he said. When there is intervention, "eventually the market will break the intervention and things will blow out."
- Government stimulus packages create volatility in stock markets because they distort economic indicators, said Faber, who predicted that the US will implement another stimulus.
- Supporters of past government interventions to boost money in the economy have said that without them the world economy would have been in much worse shape now, with unemployment much higher and more companies going bankrupt.
- "Yes I am familiar with this line of argumentation," Faber said. "The Keynesians will all say … we would be in a depression now. But it's not clear to me that this is correct."
- "At this level I'm not particularly interested in buying anything," he said in response to the deflation argument. "I buy gold, I don't know what else to buy."
- He reiterated his view that another, worse crisis may happen in five to 10 years, "when the whole financial system collapses" because the debt problem has been kicked down the road without actually being sold.
- "I think US Fed, ECB and other central banks have no other option, they will continue to monetize and buy bad paper, period," Faber said. "The central bankers are precisely the ones that don't know that excessive money creation and excessive debt creation leads to a crisis down the road."
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Video: Part 2 -- Dr. Marc Faber
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