WTF !! MARC FABER : BUY A MACHINE GUN !!

[link to seekingalpha.com]


Marc Faber: Buy a Machine Gun


The latest Marc Faber; he pretty much agrees with what we've been saying in relation to yet another stimulus plan that will be undertaken as the "real economy" does not heal on it's own. He does believe the massive monetary stimulus will create a longer "fake recovery" than we do, but I suppose that is dependent on how big the next stimulus plan(s) will be, how soon the $15,000 Cash for Clunker housing program begins, when the next Cash for Clunker cars program begins, and how long the Fed (as it talks about green shoots) continues to keep interest rates at 0-0.25% and mortgage rates near 5%.

Then after all that sugar rush, he says we will begin to pay the price. (Marc is in rare form between the 4 and 7 minute mark)

Question: You have no faith in the administration's ability to wind back stimulus and start dealing with that program?

Marc: Are you joking (while laughing) - having faith in the US administration? I wonder WHO on Earth would have faith in the US administration. Certainly, not someone who thinks!

(snip)

Question: Last time we spoke 5 months ago, you said I should buy a farm and a gun...

Marc: (laughing) now you need a machine gun!

(snip)

Question: Is there anything that you can tell me that could possibly derail your incredibly pessimistic scenario.

Marc: uhhh.... No.

It's very difficult for me to make any forecasts out 9-12 months myself, because I have to see to what lengths the government and Fed will continue to go. My assumption is there is nothing that will stop them - they don't have to face voters until August 2010 recess so the piggy bank is their oyster for the next 11 months.