Monday, October 26, 2009

Fears of a stockmarket correction

My trader's intuition is flashing warnings that the stock market might drop off a waterfall starting this week. - Charles Hugh Smith

But Marc Faber (htp: Jesse) thinks not - as the dollar weakens, the market adjusts upward. And he is convinced of the "Bernanke put", i.e. money will be thrown into the system to maintain the illusion that all is well. Longer-term, Faber (in that smiling way of his) gives it around 10 years before the dollar simply collapses as public finances run completely out of control.

2 comments:

  1. James Higham27 October 2009 at 20:31

    Yes but for how long can it be put in the system?

    ReplyDelete
  2. Sackerson27 October 2009 at 22:04

    Until, says Faber, 40 - 50% of the budget is going on debt interest and repayments, which he thinks may be 10 years away. Build that Ark.

    ReplyDelete

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