Marc Faber - whoa, that's worth watching.
I love his last remarks:
"because what happens in a bear market, first, you have one sector that falls, and this has been obviously the homebuilding sector after the summer of 2005. And then the Goldilocks crowd will tell you everything is wonderful, and it's only one sector specific. And stocks go down, but the industry is sound, as Mr. Bernanke also repeatedly said. And then the subprime lenders start to fail, and again, according to Goldilocks this is only one sector of the financial industry, and so forth. Ans so the bear market has to mature, like a good cheese or a good wine.."
And in case you're getting hungry, did everyone catch this about which bank(s) might fail:
"We have to look at the banks that have the largest derivatives exposure, because that is the next time bomb to explode at some point ...... the derivatives, they haven't exploded yet. That is the main course (he pauses and smiles, like he's eagerly awaiting the steak he just ordered) that will happen in the next 3 to 6 months"
Can anyone who listened elaborate on this for me - his distinction between derivatives and the structured investments? TIA |
