Saturday, August 15, 2009
In an August 12th CNBC interview, PhD economist Marc Faber slammed central banks:
- Asset markets will correct and the dollar will strengthen for a couple of months
- Central bankers are money printers who create bubbles
- Transparency is worse than before
- We've bailed out the financial system and derivatives. We should let derivatives players go bankrupt, and then the system will be clean
- The big crisis is ahead of us, in 4 or 5 years time, or 10 years time. We'll have a total breakdown of the system, which will devastate the global economy.
- If the Fed hadn't intervened, the system would be cleaned out, the system would be healthier because debt load and burden on taxpayers would be reduced
- For the central bankers of world, especially Greenspan and Bernanke, the market mechanism is allright as long as prices go up (except for crude oil)
- Today, employment in U.S. is lower than in 1999. In the meantime, the financial system has made billions of dollars and compensated useless financiers and dealers with huge rewards. The typical household is no better off than 10 years ago.
Watch the video (best in Internet Explorer):