Skip navigation
Watchlist Sponsored By :

Current DateTime: 01:55:12 09 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/9/2012 1:57:24 PM

Current DateTime: 01:55:13 09 Feb 2012
LinksList Documentid: 23452000
Expiration DateTime: 2/9/2012 1:57:40 PM

Current DateTime: 01:55:13 09 Feb 2012
LinksList Documentid: 24355697

MOST SHARED


Current DateTime: 01:55:13 09 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/9/2012 1:57:45 PM

MOST POPULAR


Current DateTime: 01:55:13 09 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

Gloom & Doom Economist: Credit Crunch Will Spread

Published: Monday, 19 May 2008 | 4:13 AM ET
Text Size
By: CNBC.com

AP

The credit crunch is far from over and is likely to hit sectors other than housing, Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report”, told "Squawk Box Europe."

Consumers will cut spending because of the high oil and energy prices, and all that the recent rally in stocks has shown is that investors think shares offer a better cushion against inflation than bonds, Faber added.

"I personally think we are just starting the credit crunch and it is going to be worse," he said. "I think the economy really stinks and the next sector to be hit, in America and elsewhere, is retail."

The strength of oil and energy stocks has offset some of the current market weakness, and many people believe we are moving into an environment like the one in the 1970s, with high inflation, Faber added.

But the oil price "is not going to go up another 10 times," unless the Federal Reserve prints money and causes hyperinflation; "but then we should worry about other things, we should worry about civil unrest," he said.

China and India, which for a long time have kept world prices down because of their cheap workforce, are on their way for a change.

"Because they cannot survive unless they push up manufacturing prices, they are an inflationary force on the global economy," Faber said.

However, global monetary conditions are likely to tighten as the shrinking U.S. current account deficit deprives the world of liquidity, he added.

© 2012 CNBC.com

CNBC HIGHLIGHTS

  • United States Federal Reserve
  • Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
  • Handing Money Over
  • Entrepreneurs have increasingly been buying back their companies over the last three years.
  • San Francisco
  • Where are the best city locations for singles to take the online dating plunge?
  • Antonio Brown of The Pittsburgh Steelers
  • A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
  • Floppets Flip Flops
  • Here’s a look at the woman behind the newest collectible toy that kids love.
  • Hopslam Beer
  • Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.


Current DateTime: 11:43:35 09 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 11:56:47 09 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 10:44:46 09 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 01:22:58 09 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters