Month: November 2013

Marc Faber believes China could spark a bigger crisis than in 2008 . An alarming credit boom in China could trigger a global financial crisis that would make the one in 2008 look mild by comparison, says old gloomy eyes, Marc Faber.“If I am telling you that we had a credit crisis in 2008 because we had too much credit in the economy, then there is that much more credit as a percentage of the economy now,†the author of The Gloom, Boom & Doom Report told CNBC late Thursday. “So we are in a worse position than we were back then.†China, in particular, has seen credit as a percentage of the economy jump 50% in the last four and a half years, said Faber, the “fastest credit growth you can image in the whole of Asia.†Meanwhile, Deutsche Bank strategist John-Paul Smith told clients on Wednesday that China’s growth model continues to be based on “ever-expanding debt, which leaves the country and financial markets very vulnerable to any potential loss of from investors and lenders.†It Can’t Be Done I have been preaching a similar message as Faber for years, most recently on November 6, in It Can’t Be Done