Faber sees bull run ending as recession looms for US

Quote from S2007S:

Wouldnt a small recession be healthy in the long run....things have been to good for too long, cant last forever....
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HELL YES it would be healthy. Necessary, even. But politicos don't want to take the blame for "causing recession", and "causing some people to lose their jobs"... certainly wouldn't want to run for reelection with a recession going on... telling us "it's for your own good" wouldn't play well at the polls.

So instead, they adopt a plan which will literally DESTROY America's money over the next 30-50 years.
 
Quote from S2007S:

"....things have been to good for too long, cant last forever....
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Actually, they haven't been "all that good" in real terms. Mostly what's been called "GDP" has actually been just a high level of inflation. (Yes, I know the Talking Heads make it a point to mention several times daily, "inflation is only 2%". That's probably the biggest lie you've ever heard.)
 
Quote from S2007S:
Wouldnt a small recession be healthy in the long run....things have been to good for too long, cant last forever....
More...
Probably a small recession could be healthy, clearing out excess speculation and also weak participants/companies across all industries.

The thing is IMO - just like inflation - once you are in a recession it's extremely hard to get out of it, once it starts feeding on itself. I guess the US Fed thinks it's wiser to try avoiding a recession in the first place than gambling on how deep it would run. That's my take anyways.
 
Quote from makloda:

"... once you are in a recession it's extremely hard to get out of it, once it starts feeding on itself. I guess the US Fed thinks it's wiser to try avoiding a recession in the first place than gambling on how deep it would run....
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There's some truth in what you say. However, our inflation, money pump, deficit spending, trashing $USD is not unlike an infection.

If you treat it before it becomes severe, it's not too painful to cure. If you let it grow unchecked long enough, the patient dies no matter what you do.
 
Quote from PohPoh:

Yeah, you don't get to be a famous super rich investor when you are like a broken clock...
You post on the internet, if that's the case...
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pohpohmyminitrading
 
I know Faber is bearish on the markets because of valuation, if the market was trading much lower, I'm sure he'd be bullish.

Recessions are part of the business cycle, if the Fed tries to repeal them and only have good times, the Fed is only fooling itself. The consequences won't show up on GDP but in the decline of purchasing power for the consumer.
 
The fed either has to actively promote the bubble or watch it collapse. Its going to choose the later and we are going to find out if it works.
 
For a second I thought you were referring to David Faber...and I said to myself "Preposterous! CNBC suggesting that a bull run will end? What will Bob Pisani do?!"
 
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