Tags: marc | faber | cancer | governments

Faber: Governments Growing Like Cancer Amid Crisis

Friday, 18 Jun 2010 08:32 AM

Economist Marc Faber, publisher of "The Gloom, Boom & Doom Report," says the financial crisis has allowed governments to grow like cancer.

“Any government intervention has unintended consequences,” Faber told CNBC. “When the government intervenes … eventually the market will break the intervention and things blow out.”

However, he also says that sobering up from the effects of government stimulus doesn’t necessarily mean that the economy will fail to grow in the second half of the year.

“We’re in a correction phase, we got very oversold,” Faber says. “We’re rebounding. We’ll probably have a bad September and October.”

Faber is also dismissive of the current Spanish bond auction. “Who would buy a 10-year Spanish bond at 4.91 percent?” he asks. “Not me. I’d rather be in equities than Spanish bonds.”

The Spanish government sold about $4.3 billion in treasury bonds, the maximum set for Thursday's auction, easing investor worries that the country will struggle to make ends meet without outside help but leaving analysts unconvinced.

“With the current liquidity arrangements in place there seem few doubts about the ability to find buyers but the quality of the order book (difficult to find out in an auction) is important,” analysts at Deutsche Bank wrote in a research note.

"Greece started to have real problems when the market started to realize that domestic banks were making up a sharply higher percentage in the third of the three syndicated deals earlier this year,” the note read.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Economist Marc Faber, publisher of The Gloom, Boom Doom Report, says the financial crisis has allowed governments to grow like cancer. Any government intervention has unintended consequences, Faber told CNBC. When the government intervenes … eventually the...
marc,faber,cancer,governments
243
2010-32-18
Friday, 18 Jun 2010 08:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved