Video: Faber Says Fannie, Freddie Should Split Up, Not Get Aid

Investor Marc Faber, publisher of the Gloom, Boom & Doom Report, talks about the future of Fannie Mae and Freddie Mac, the global economy, and the outlook for stocks and commodities. Faber said Freddie Mac and Fannie Mae should close down their business or split into private companies and not get government aid.

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00:00 "The world is in recession already."
01:35 Earnings to "decelerate"; technology stocks
02:59 Need to close down or split Fannie, Freddie
05:11 Concerns about technology stocks
05:41 S&P 500 forecast; outlook for interest rates
07:50 "The Fed is totally ineffective."
08:39 Outlook for oil prices, commodity markets
10:35 Credit crunch, impact on economy
11:24 Overseas interest in U.S. assets; China
13:46 U.S. resource companies "attractive" to Asia
14:47 Worst case: "colossal bust with inflation"

Faber Says Fannie, Freddie Should Split Up, Not Get Aid
Bloomberg, July 23, 2008 07:22 EDT

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  1. brion commented on Jul 24

    “Faber said Freddie Mac and Fannie Mae should close down their business or split into private companies and not get government aid.”

    Oh yeah?
    Well the banks need a trash can for all their bulging sacks of shit and Fannie/Freddie are IT!

    “Let the BIG BANK BAILOUT er, Home/Equity Rescue/Kitties and Orphans Stimulus Act, COMMENCE!”

    ““This is the most important piece of housing legislation in a generation.” Chris Dodd
    (yeah, cause it’ll means the biggest campaign contributions you’ll have received in a generation Chris)

    a disgusted Democrat

  2. Mark E Hoffer commented on Jul 24


    are you ready, yet, to cast off the false dichotomy of (D)&(R)?

    you, and too many others, are rapidly coming to, if not already crossed, the line that separates Ignorance and Negligence..

    see also: “The Democrats’ reticence on such action ultimately may be rooted in congressional complicity with the Bush administration’s intelligence policies. Many of the war on terror programs, including the NSA’s warrantless surveillance and the use of “enhanced interrogation techniques,” were cleared with key congressional Democrats, including Pelosi, Senate Intelligence Committee chairman Rockefeller, and former House Intelligence chairwoman Jane Harman, among others.

    The discussions about a broad investigation were jump-started among civil liberties advocates this spring, when it became clear that the Democrats didn’t have the votes to oppose the Bush-backed bill updating FISA. The new legislation could prevent the full story of the NSA surveillance programs from ever being uncovered; it included retroactive immunity for telecommunications companies that may have violated FISA by collaborating with the NSA on warrantless wiretapping…”

    by the way, how are your votes counted?

  3. Mike in NOLa commented on Jul 24

    SMN (ultrashort basic materials) still has a ways to run. The “no recession” and “Chinese demand” boys have kept materials stocks up. Check out the chart: peaked at 70 last Aug. as the recession started to get priced in, but then the huge commodities bubble took over; that is clearly deflating.

    This should do nicely once this rally fades, whenever that is. I notice that’s initial report is chalking up the rise in unemployment claims to “seasonal volatility” so the current stock pumping operation continues in full force. I imagine CNBC will dredge up someone to tell us how Ford has bottomed.

  4. brion commented on Jul 24


    are you ready, yet, to cast off the false dichotomy of (D)&(R)?”

    Don’t confuse “fresh outrage” with “recent revelation”….

    besides, “i didn’t leave the Democratic party etc….”

  5. Mark E Hoffer commented on Jul 24

    to my point, above, and to simplify:

    “Let me now take a more comprehensive view, and warn you in the most solemn manner against the baneful effects of the Spirit of Party generally. . . . A fire not to be quenched, it demands a uniform vigilance to prevent its bursting into a flame, lest, instead of warming, it should consume.”
    Reference: George Washington: A Collection, W.B. Allen, ed. (519-20)

    George Washington
    1796 – letter to Thomas Jefferson
    Category: Politics and Parties
    “[N]or did I believe until lately, that it was within the bonds of probability; hardly within those of possibility, that, while I was using my utmost exertions to establish a national character of our own, independent, as far as our obligations, and justice would permit, of every nation of the earth; and wished, by steering a steady course, to preserve this Country from the horrors of a desolating war, that I should be accused of being the enemy of one Nation, and subject to the influence of another; and to prove it, that every act of my administration would be tortured, and the grossest, and most insidious mis-representations of them be made (by giving one side only of a subject, and that too in such exaggerated and indecent terms as could scarcely be applied to a Nero; a notorious defaulter; or even to a common pick-pocket).”
    Reference: The Papers of George Washington, Library of Congress, American Memory Collection

    We need little else, than the understanding of the wise council our Founders so richly endowed us with, to be able to continue the experiment of Liberty that they did so well to begin.

    Liberty is at stake, and if we continue with our distractions by factions, it will be dined on, once consumed, never to be supped by us again.

  6. johnnyvee commented on Jul 24

    Did anyone catch Faber’s comment that if China is not allowed to buy company’s with hard assets,i.e., cooper, oil, etc., China will take them by force. HOLY SHIT! I recall that the reason Japan bombed Pearl Harbor was because during Japan’s attempt to colonize China the US cut off its oil supply.

  7. Frederick Hayek commented on Jul 24

    What are you simpletons blabbering about? Take your political dullardry elsewhere. I’d prefer to talk about Marc Faber — this guy really knows what he’s talking about. Spot-on analysis, if you ask me.

    And, yes, his statements with regard to China are both accurate and chilling. How can it be otherwise? China needs the resources.

  8. Brion commented on Jul 24

    Hayek, you Sino buffoon….what’s china’s commodity lust have to do with Fannie & Freddie?

    Hoffer, how’s that poly sci class going anyway?

  9. Mark E Hoffer commented on Jul 24


    you’re a good sport, and a fine foil..

    the PoliSci pursuit started, in earnest, after, as an Econ undergrad, at a supposedly ‘supply-side’ school, they started teaching The Great Writs of JMK.

    it was then, that, there was no denying that Engineering and Economics had been served up, as burnt offerings, to our false G-ds of State. And, that the pap that has served as ‘Education’, for all too long, is from a recipe that Bernays, himself, would have given 3-stars..

  10. Mark E Hoffer commented on Jul 26


    with this: “and a fine foil..” I thought you were to take the opportunity to inquire after my progress in English view of: “how’s that poly sci class going anyway?”

    Posted by: Brion | Jul 24, 2008 3:45:22 PM

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