Comments on: Marc Faber on passing the baton to emerging economies http://www.creditwritedowns.com/2009/05/marc-faber-on-passing-the-baton-to-emerging-economies.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: barryschaeffer http://www.creditwritedowns.com/2009/05/marc-faber-on-passing-the-baton-to-emerging-economies.html#comment-56421 barryschaeffer Wed, 20 May 2009 01:18:00 +0000 http://www.creditwritedowns.com/?p=8703#comment-56421 Faber's comments seem somewhat inconsistent to me. He touts farm ownership, which is consistent with owning stuff like farmland, fertilizer plants, potash, oil, and the like. Then he touts blue chip stocks, which would seem to be at great risk for serious problems with pricing power in an atmosphere in which only commodities have pricing power (i.e. workers and suppliers are at the mercy of those with CASH). Am I all wet here? Barry Faber’s comments seem somewhat inconsistent to me. He touts farm ownership, which is consistent with owning stuff like farmland, fertilizer plants, potash, oil, and the like. Then he touts blue chip stocks, which would seem to be at great risk for serious problems with pricing power in an atmosphere in which only commodities have pricing power (i.e. workers and suppliers are at the mercy of those with CASH).

Am I all wet here?

Barry

]]> By: Jorma http://www.creditwritedowns.com/2009/05/marc-faber-on-passing-the-baton-to-emerging-economies.html#comment-56420 Jorma Mon, 18 May 2009 18:39:00 +0000 http://www.creditwritedowns.com/?p=8703#comment-56420 All those who are bullish on Asia - China in particular - has yet to explain to me how the enormous drop-off in consumer spending in the US will impact. There are huge fleets of empty ships of the shores of Singapore, hollow containers and scores of idle/closed factories in mainland China because American's aren't buying the crap anymore. At the same time they are engaged in the same type misallocation of capital into real estate etc as we had here. Unless the Chinese begin consuming more themselves (which they won't - partly because many of them are losing their jobs), they will not become a true power. That the Chinese government is doing a bang-up job keeping things under wraps doesn't change the facts. All those who are bullish on Asia – China in particular – has yet to explain to me how the enormous drop-off in consumer spending in the US will impact. There are huge fleets of empty ships of the shores of Singapore, hollow containers and scores of idle/closed factories in mainland China because American’s aren’t buying the crap anymore. At the same time they are engaged in the same type misallocation of capital into real estate etc as we had here. Unless the Chinese begin consuming more themselves (which they won’t – partly because many of them are losing their jobs), they will not become a true power.

That the Chinese government is doing a bang-up job keeping things under wraps doesn’t change the facts.

]]> By: Whaaa http://www.creditwritedowns.com/2009/05/marc-faber-on-passing-the-baton-to-emerging-economies.html#comment-56414 Whaaa Fri, 15 May 2009 17:17:00 +0000 http://www.creditwritedowns.com/?p=8703#comment-56414 Chinese banks are making loans for real estate that remains empty and infrastructure projects that are unnecessary. How does it not end badly? I have respect for Faber, he's a very smart guy, but I would not buy Chinese banks right now at these high multiples of book value. Chinese banks are making loans for real estate that remains empty and infrastructure projects that are unnecessary. How does it not end badly? I have respect for Faber, he’s a very smart guy, but I would not buy Chinese banks right now at these high multiples of book value.

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