Marc Faber: Treasurys Are A "Suicidal Investment"

Discussion in 'Economics' started by bearice, Dec 30, 2010.

  1. Marc Faber, who just like Nassim Taleb has never hidden his disdain for investments in US-backed paper, is back to bashing Treasurys, although with logic diametrically opposite to that espoused by those such as Morgan Stanley who see rising rates as a sign of economic growth. "This is a suicidal investment,” Faber told Bloomberg in a telephone interview from St. Moritz, Switzerland. “Over time, interest rates on U.S. Treasuries will go up. Investors will gradually understand that the Federal Reserve wants to have negative real interest rates. The worst investment is in U.S. long-term bonds.” As for equities, Faber increasingly sees a Zimbabwe outcome: “If you print money, the currency goes down and the S&P 500 goes up. By the end of 2011, people will look at 2012 and think 2012 could be a very bad year because the policies applied are not sustainable and create a lot of instability. Investors may look at 2012 and 2013 with horror.” Not Wall Street thought. By the end of 2011, bankers will most likely be looking at the second consecutive record bonuses year, and by then will have enough gold safely stashed away in non-extradition countries to where the host organism may finally be allowed to die in peace.

    Complete article:
  2. Interesting, Bearice.

    Where do you stand on that issue?

    Personally, I have no interest in long term Treasuries either.

    With the U.S. government still on an all-out spending binge, confidence in U.S. debt is in increasing jeopardy. Do we have the stomach to do what is necessary to curtail that debt? I doubt it.
  3. BS. cant go anywhere with their gold. Not enough safety. Cream of US will stay in US and do the right thing to keep in power.

    remember cycle clock ?!?! Now it is time for higher interest rates. And this time is no different.

    position accordingly.

    here is good reason for what i expect

    also see eurchf, eurjpy charts and guess how much loans was funded using chf and jpy pre 2008. And still are.
  4. Another day, another doomsday thread.
    I wonder, what would this place have been like in Jan 1980, when gold peaked? Would there have been twenty more threads just like this, with not a single one of the thread starters stopping to think that if the US could survive civil war and prosper, and WWII and prosper, that it could survive a mild oil shortage and some inflation without collapsing?
    Or, to take a more apt historical parallel, the 1907 financial crisis is only remembered by folks who know the history of the Federal Reserve. At the time, it felt a whole lot worse, I'm sure.
    Marc Faber is an ass.
  5. No, the rich will leave because there is nothing more scary than a bunch of middle class people that just lost everything. At least in a poor country, when someone loses everything(which isnt much to begin with) they dont get as pissed because they are used to being poor.
  6. Now the world situation is more terrible than World War II. The multi-trillion dollars bailouts worldwide is providing the smoke screen. 90% of the iceberg is hidden under the ice cold water and cannot be seen.
  7. Worse than a war that followed the war that was, up to its time, already the most destructive war ever?
    Worse than a war that left all of continental Europe except the Iberian peninsula covered in blood and ashes? That left most of Asia outside the Indian subcontinent in the same state? That led to the establishment of totalitarian, bloodthirsty regimes over all of Eastern Europe, China, and half of Korea?

    A little perspective might be in order.
  8. Look at the technology provided by World War 2. Big transport war planes were converted to passenger planes after the war. I think rocket technology was a gift of World War 2. Less inflation after the war (not sure). Majority of countries involved in World War 1 and 2 are now rich and highly developed. Fire destroys the forest but provide nutrient rich ash for the better development of the forest.
  9. Only if you survived. Dead is dead.
  10. Life and death is determined by God. If God wants you to survive nobody can kill you. If God wants you to die nobody can save you. To provide ash to the forest rotten and fallen woods and some good trees have to be burned. There cannot be ash without a fire and fire does not distinguish between anything and anybody.
    #10     Dec 30, 2010