Marc Faber, labeled “Dr. Doom” by the press, told CNBC’s Squawk Box Europe that the credit crunch is far from over and is likely to spread to other sectors outside of housing. Faber, who is the editor and publisher of The Gloom Boom & Doom Report, told CNBC that:

I personally think we are just starting the credit crunch and that it will get much worse over time…

I think the economy really stinks and the next sector to really get hit hard in America and elsewhere is retailing. In other words, that the consumer, he has to allocate the larger and larger portion of his income for energy, for gasoline, and for food, and he has less money for discretionary items, and if you took out the inflation in America from retail sales, namely in food and energy, the real retail sales would be down significantly.

You can access the 2 minute 51 second CNBC segment here.

Source:

“Gloom & Doom Economist: Credit Crunch Will Spread”
CNBC, May 19, 2008

This post is filed under Investment Outlook, Marc Faber, Retail. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.