Marc Faber Predicts That China Will Fall Into ‘Technical Recession’ in a Year
by Trader Mark Wall Street Pit
Pretty interesting commentary from Marc Faber in this Bloomberg video, considering he is usually a mega Asian bull. While his terminology for a recession is different than what is commonly used (two quarters of negative GDP growth) we saw what even a mild slowdown in China did post 2008 Olympics spending spree. If this comes to bear, the impact on the commodity market would be of course enormous as China is the worlds marginal buyer of everything, dominating some markets to the tune of 50% of all global purchases. Ironically lower commodity prices would be helpful to the strained U.S. consumer, but I dont think the stock market would be looking that far ahead. Anyhow, just one mans opinion but someone I enjoy listening to. His indicators of why he is seeing bubble activity on the ground in China are also quite interesting.
As for the Chinese market? Its not acting well at all lately.
Marc Faber Predicts that China will Fall into Technical Recession in a Year
Marc also touches on the long term implications of the soaring inequality of wealth distribution in the U.S. something Ive been flagging from day one on this site.
6 minute video email readers need to come to site to view.
Reprinted with permission from Wall Street Pit.