Marc Faber gives us his take on where the market is currently, and what to expect in 2009. Videos follow the quotes.
On current market intervention:
The whole world thinks that intervention – fiscal and monetary – is good. Nobody thinks clearly, what the consequences are.
On the capitalism mechanism:
The market mechanism clears… the capitalistic system is designed [so] that the ones that are weak and incompetent are eliminated.
On society’s fears of bad economies:
If people can’t accept the downside of capitalism, then they should become socialists.
On what to tell a laid-off worker in Detroit that’s losing their house:
Had the government not intervened with fiscal and montary measures before, with fannie Mae, Freddie Mac, and build up of the leverage and encouraged the leverage in the sysem it would not have happened. That should be explained to the people of America.
On the Mining Company Rebounds:
BHP, CVRB, Newman (et. al.). these are the companies that can rebound strongly.
The long-term demand for oil is there. The supply won’t be there. So, long-term i think the price will be much higher than it is today.
On World War III:
I think World War III has already begun.
If someone has no money in Asia (Investors), now you can buy top quality companies at reasonable prices. Most Asian markets like Taiwan and South Korea, [Japan], [Singapore], [Hong Kong], are at the level of 1988 [prices].
On the near-term
I think maybe we have a correction into February.
then another move up through March and April. Kind of a – probably peak around April.
Then, a big set back, because I don’t think the economy can recover in the second half of 2009. I think we’ll have to wait a long time for a real economic recovery.
I’m very bearish. I think it will take 5 years until the world recovers.
And now the videos:
Part 1 – Marc Faber on Bloomberg News: