Junk: That’s How US Bonds Should be Rated Mark Faber on this and the Eurozone downgrades
Speaking with CNBC, Mark Faber, Editor and Publisher of the Gloom, Boom and Doom Report, weighs in on the downgrades of European bonds, but thinks that they are just starting to catch up with reality. He says their sales tell him that through backdoor action the ECB is already monetizing. Face it, both the US and Europe have so many unfunded liabilities that in the long term you’ll lose money on sovereign bonds.
Does he have a ‘Black Swan’ scenario for Europe? Yes, when some countries say ‘we’ve had enough’ and exit the Euro. (6:27)