Marc Faber is Interviewed

on Bloomberg today (05.22.07). I highly recommend your listening. I made a few notes which may be cryptic, but I'll share them with you:

• Bubble in all assets classes
• Credit bubble in US
  
• US stock market is rising largely due to a falling dollar (more later)
• Though in a bubble, prices could increase more
• If all bubbles burst, and he thinks that we are in the final stage, it will affect the world economy
• He thinks the US will be hit more because it's wealth is based on asset appreciation rather than real industrial production (more later)
• Asian currencies will appreciate with the rembi, and those currencies are undervalued in relative terms. He would not play that, though.
• Distressed assets in Middle East stock market, down 50-70%--some value there
• Distressed assets in Detroit real estate.
• Yen is undervaled--it will strengthen when US stock market decreases
• Euro v. USD--makes US assets relatively inexpensive (though not cheap)--I'm beginning to believe, though I did not believe it before, that this dynamic may continue to drive our markets higher.
• Interest rates are below the "natural" (think real interest rates). Thinks the rate is ~10%
• No real safe place as he feels all assets are correlated.
• All CB's are willing to print money
• Hard to know what the catalyst (to a market decline) might be. Cannot really know the "what" or "when" but rather that there generally is one.
• Thinks that there is illiquidity in the housing market now.
• He likes Vietname. Does not see many opportunities elsewhere.
• One asset class that is 'cheap' is farmland. He said, "Perhaps your Bloomberg readers and portfolio managers should learn to drive a tractor." [I thought that was quite funny]. Should consider owning farmland in
• Argentina
• Brazil
• S. Africa (though not as safe as Brazil)
• N. Zealand
• Australia (NZ and Aus due to proximity to China).

I'm sure that I left some stuff out. I hope that you will take time to listen.