- US Will Borrow Less as Banks Pay Back Funds: Geithner
- Wal-Mart Holiday Forecast Light, Profit Beats
- US Mortgage Refinancing Up; Buying Demand Sinks
- Intel Agrees to Pay AMD $1.25 Billion to Settle Disputes
- Kohl's Profit Beats Street, But Outlook Falls Short
- United Tech to Buy GE Security Unit for $1.82 Billion
- Gold Hits $1,122, Barrick Chief Says Selloff Possible
- Wall Street Pay Is Often too High: Bill Gates
- Morgan Stanley Gets Aggressive in Luring Brokers
- Ford, Hyundai, Audi Gaining Interest
- This Drug Firm Will Snap Up 50% By Mid-2010: Trader
- Warren Buffett Ranked #14 On Forbes 'Most Powerful People' List
- What to Expect From Disney Earnings?
- HP's Shot Across Cisco's Bow
- USC Football Blog Leads All-Access Space
- Clowning Around At Work
- Ahead of Earnings Disney Restructures Studio
- Nov. 11: Unusual Volume Leaders
MOST SHARED
- Wal-Mart Holiday Forecast Light, Profit Beats
- How the Droid and Google Threaten the GPS Makers
- Jobless Claims Post Another Drop as Picture Improves
- CNN Anchor Lou Dobbs Says He is Leaving Network
- Shopping for Answers
- HPQ to Acquire 3Com
- Obama Most Powerful Person in World: Forbes
- Pricier Beer Helps AB InBev Operating Profit
- Highest State Foreclosure Rates
- Rising Jobless Biggest Threat to World Trade: WTO
Text Size 
The sheer amount of money governments are pumping into the financial system will eventually lead to a very strong rally in beaten-down assets, investor Marc Faber said on CNBC Friday.
 |
Photo: Oliver P. Quillia for CNBC.com |
By and large asset markets are "terribly oversold" now, while investors are going overboard into the U.S. dollar and U.S. Treasurys, Faber, editor of the Gloom, Boom & Doom Report, told "Squawk Box Europe."
"What you could see in the next three months is a very strong rebound in asset markets, in equities, followed by a selloff in bonds and eventually a selloff in the dollar," he said.
Governments and central banks around the world are providing liquidity and that will eventually have an impact, Faber said.
And once the buying starts the rally is likely to be "stronger than people expect" given that financial institutions are sitting on so much cash, he added.
'Colossal Deflation'
"I think the intervention by the government in the past and at the present time has created more volatility, not less, and so right now we have deflation, we have colossal deflation in asset prices," he said, noting that equities alone have lost $30 trillion globally.
But "I assure you if you throw enough money at the system, eventually you can reflate, especially in the United States," Faber added.
Statistically a rebound should happen, but if it doesn't "the air is out" and the world faces an economy "worse than the depression of '29 to '32," he said.
Print
Email
- Billboard allows music lovers to watch concerts for free online, with five different camera angles.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- An Italian cashmere maker aims to make profits while creating ideal conditions for his workers.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- The NYT explains what the Senate needs to do to improve cost and quality in U.S. health care.
Data is a real-time snapshot *Data is delayed at least 15 minutes