Gloom & Doom Economist Says Worst Is Yet to Come

[Joseph T. Burkeson, CMI]

Gloom & Doom Economist Says Worst Is Yet to Come

Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, thinks the worst is yet to come for the global economy.

Appearing on CNBC's "Squawk Box," the economist and managing director of Marc Faber Ltd., explained his bearish outlook -- and offered advice for how to play a glum market.

Faber perceives a "battlefield" between the Federal Reserve and other central banks, which had infused billions of dollars into the worldwide system to boost liquidity, and the counter-pressure of illiquidity brought about by market forces such as declining home prices.

Real estate. Faber's outlook for real estate goes against the grain: Manhattan is the great exception to U.S. trends, continuing to rise in price even when strong U.S. regions show signs of decline. But Faber says that in the bigger perspective, New York property is as vulnerable to a credit bust as any major metropolitan areas, such as "Hong Kong, Zurich and Frankfurt."

His real-estate advice: "Buy a farm and learn to drive a tractor."


Make sure you watch the video.