Marc Faber on Bloomberg - November 11, 2008

Marc Faber has certainly had some impressive calls over the past year. On July 10th, he predicted that deflation will rule the day in the short term. And as far back as March 29th, he voiced concern that massive deleveraging could drive down asset prices across the board.

I've posted the latest video of Marc Faber on Bloomberg (November 11, 2008). Faber currently believes:

• The equity markets are extremely oversold at this point.
  
  
• However, he would not bet on a big rally - it could happen, but is not a given, as economic news will continue to be terrible.
  


• Government bailouts are tiny compared to the asset deflation we've witnessed - so he does not see inflation being a factor as a result.
  
  
• BUT - as a result of capital projects being cut, commodity prices could skyrocket when the global economy picks up again (and this could take years).
  
  
• For example, a lot of oil exploration will stop at these prices, because it's not profitable.