Well-known investor Marc Faber appeared in an interview with Bloomberg Television this morning, where he shared his grim outlook for the global economy. Bloomberg’s Carol Massar and Alexis Xydias wrote:

Faber said the “world may already be in recession,” and reiterated a prediction for a “bust” in global markets.

Markets may enter “a vicious cycle on the downside” whose worst scenario is a “colossal bust with inflation,” as central banks are unable to manage the economic slowdown and faster growth in prices.

Still, Faber forecast the Standard & Poor’s 500 Index may climb about 5.7 percent from current levels, to 1,350. Oil may drop $30 a barrel to “about” $100 in the near term, he said, although the “long-term” prospect for oil prices is to remain “tight.”

The 16 minute 27 second Bloomberg interview can be viewed here.

Graphic By Barun Patro, stock.xchng

Source:

“Freddie, Fannie Should Split, Not Get Aid, Faber Says (Update2)”
Carol Massar, Alexis Xydias
Bloomberg, July 23, 2008

This post is filed under Commodities, Energy, Marc Faber, Natural Resources, Stocks. 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.