In an interview on FOX Business Network’s The Intelligence Report with Trish Regan, Marc Faber, editor of the Gloom, Boom and Doom Report, said there is definitely a bubble, but didn’t put the blame solely on the Federal Reserve.
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“It’s not just the Fed that has fueled the bubble, it’s the other central banks… the ECB that has fueled the bubble mostly with sovereign debt and bailed out Greece repeatedly,” he said.
Faber added: “As they bailed out Greece repeatedly, the problem became bigger and bigger and bigger. This is the problem of central banking today-they do not solve problems, they postpone problems.”
When asked about how the Fed and interest rate levels in the U.S. impact the current state of the economy, Faber said:
“Basically, we are six years into an economic recovery… there are huge distortions in the markets, where basically financial assets have been going up very substantially, and real wages for the typical household, or real household income, has been either flat or down. So it’s created huge market distortions, and I think eventually this will be resolved by a massive deflation in asset prices.”