Updated: July 24, 2008 Added Part 2
Marc Faber on 2008.07.23, on interview with Bloomberg made the comment, that interest on mortgages are higher than was before FED start cutting rates on September 2007 and it only shows that “FED is totally ineffective and inept organization, that has to be said, they don’t understand simple economics. Because Mr Bernanke, he reads and writes about the depression years, but the difference between the depressions years and today is that commodities prices picked out in 1921 and there were well established downtrend. And today situation is that 3 billion people are joining global economy, who are eating, who are driving around more and more and they put pressure on commoditie prices and this is the inflationary environment. This is not the deflation environment. And if some FED member doesn’t understand that, than he shouldn’t be at the FED in the first place.”
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Interview with Marc Faber on 2008.7.23 part 2