The Obama administration’s meddling in the market will not solve problems, but will foster uncertainty and harmful, unintended consequences, Marc Faber, author and publisher of the "Gloom, Boom & Doom Report," said.
Faber, known as “Dr. Doom” for his persistently pessimistic outlook, commented on President Barack Obama’s proposed new limits on the size and trading customs of big banks.
Obama wants to prevent “excessive” risk-taking on Wall Street.
"I don't have a very high opinion of Mr. Obama," Faber told CNBC.
"I was negative of Mr. Bush but I think Mr. Obama makes him look like a genius. Basically I think everybody will agree that in an economic system, the market solves problems best."
Government interventions in the financial markets have had severe effects during the last two years, Faber noted.
The result of trimming interest rates to zero percent in the fall of 2007 was the rise in oil prices in the first half of 2008, as investors looked for a place to put their money to get a good return, he added
"The annual expenditures for oil of the U.S. increased… you had another $500 billion tax on the consumer. That pushed the consumer down even more in his reduction of consumption," he said.
"Most people don't have money left after the policies implemented in U.S.," Faber said.
Faber said emerging economies have benefited from Fed Chairman Ben Bernanke’s policies, not the U.S. economy.
"These people, they should all send a thank-you note to Ben Bernanke for printing money,” said Faber.
Faber said he is opposed to repealing the Glass-Steagall Act that separated investment banks from commercial banks, and he does not think state regulation is the answer.
Others agree that government intervention can be risky .
Investor Mario Gabelli, fonder of GAMCO Investors, also told CNBC that so called “proprietary” trading was a source of innovation for Wall Street and investors.
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