Marc Faber visited with CNBC yesterday morning and offered an especially "doomy" and "gloomy" outlook yesterday (no "boomy" in this call). He cites corporate profits not the fiscal cliff as the main issue. As an aside I agree fully with what our politicians will do – any "solution" will be extremely back end loaded so that by the time we get "there" (in time) they will have pushed off any serious adjustments needed until WAY down the road, at which time the next group of politicians can kick the can. I do not however agree with the complete loss of civilization within 5-10 years.
- The markets are going to go into meltdown soon, so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom report told CNBC on Tuesday.
- “I don’t think markets are going down because of Greece, I don’t think markets are going down because of the ‘fiscal cliff’ — because there won’t be a ‘fiscal cliff,’ ” Faber told CNBC’s “Squawk Box.” “The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”
- Faber argued that the “fiscal cliff,” a rise in taxes and automatic spending cuts, would actually involve some minor tax increases in “five years’ time” and some spending cuts “in 100 years.”
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