Marc Faber, Editor and Publisher of the Gloom, Boom, & Doom Report, spoke with CNBC's Brian Sullivan about the upcoming FOMC meeting.

Asked what the next stage of the Fed’s process is, Faber chuckled and said, “My view is that if the market drops further, they will implement further easing moves; in other words, QE4 in the US, and the charade goes on. My sense is that the bond market is no longer playing entirely the game.”

Under QE4, he predicted, “The bond market will get hit, and with it, lower-quality bonds.”

Sullivan pointed out that many such bonds in the oil patch are trading at $0.60 and $0.70 or lower.

Faber estimated QE4 would have to be at least $1 trillion to achieve the Fed’s objective of boosting the values of these instruments. He allowed that the S&P could rally above 2,050, but at that point it will encounter a lot of supply. The S&P 500 jumped 2.5 percent to 1,969.28 at 4 p.m. in New York on Tuesday.

"I think the market may rebound further, it was very oversold a week ago," he said.

In the next clip, Faber expresses a pessimistic view of the state of presidential politics in the U.S.

He said most presidential candidates are "relatively questionable" in integrity and quality.

"Going into the year end and the next year, I only have to look at the presidential candidates and then I know I have to be bearish," Faber said. "It's a pity that a country like the U.S., with so many highly intelligent and educated people, can only produce the kind of candidates we have."

He said Republican candidate Ted Cruz would be the best choice for U.S. markets. "He's a relatively conservative person and that may be good for stocks," Faber said.

U.S. markets rose Tuesday, so it was natural to speculate on whether the market is bottoming. Steve Auth, of Federated Investors, thinks the S&P could fall to 1,850 before turning up to 2100 and reaching 2,500 in a year and a half.

Yahoo (YHOO) was in the news because it suffered a setback on a tax ruling it is seeking regarding its Alibaba (BABA) spinoff transaction, and Apple (AAPL) was featured because of a pending product announcement. Tim Seymour, Brian Kelly, Karen Finerman, and Dan Nathan gave their ideas on how to trade these stocks. Aaron Kessler, of Raymond James, explained the status of the Yahoo ruling to Melissa Lee, and Finerman and Nathan reacted.

From Vancouver, Deirdre Bosa presents charts that document a poor market outlook for Septembers that have begun with losses of 1% or larger in the first five days of the month.

Tuesday saw some upgrades of financial stocks by sell side analysts, and Marty Mosby, of Vining Sparks, presented to a skeptical Bill Griffeth the usual arguments that the industry will benefit from a benign environment for M&A and earnings growth.