If governments throw enough money at the system, a strong, near-term rally should happen, investor Marc Faber told CNBC. But if it fails to materialize, prepare for an unprecedented depression.
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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November 23rd, 2008 at 8:05 am
it funny how you world view changes your perception…my headline for this piece would not be “Strong Rebound Coming” as CNBC has it…I viewed the whole piece. Mine would be ‘Worse Than the Great Depression?”
Marc, who now is also called Dr. Doom, along with Nouriel, by the scared witless MSM, said a Citi could easily rebound 100%, before going to zero…and with all economists saying we will have a recession and not a depression, we could have something even worse than the GD.
November 23rd, 2008 at 9:26 am
“If governments throw enough money at the system, a strong, near-term rally should happen, investor Marc Faber told CNBC. But if it fails to materialize, prepare for an unprecedented depression.”
What does that even mean? First off, a “strong. near-term rally” in what? The markets? {credit, equity, bond, stock, all, neither, more or less….]
If the strong near-term rally applies to the stock market, for example, are we to infer that a Great Depression—which WOULD HAVE BEEN caused by unprecedented debt to GDP ratios, insolvent banks, surging unemployment, etc., etc., will be thwarted by “a strong-near term rally” in the stock market? If so, that is an absurd thesis brought to us by the people who believe that a dandruff shampoo….uhhrr—”head and shoulders chart formation”—is a reliable indicator and that it is perfectly reasonable to throw one’s hard-earned money down and short the SPY because he sees a the apparation of some faceless “price-action” dude who has a “slumping” left shoulder.
If the “strong near term rally” applies to the economy as a whole, then it’s so broad that it’s rendered meaningless. It’s kind of like saying to nobody in particular that we’re having a “rally in the weather”. Even if we grant the fact that a “rally in the economy” in this case is being applied to real estate, car sales, job creation, bank solvency, global imbalances, Fed Balance Sheet Reconstruction, etc., etc., etc we still run into reductico ad absurdum….as we ask ourselves how a Japan-like response of throwing money at this bloated system will to anything but foster an illusory, strong near-term rally.