'Power Lunch' Guest Says No to Greek Debt, Warns All Governments Will Default
Just one day after Treasury Secretary Timothy Geithner said the U.S. wouldn’t lose its “top-notch” credit rating, one CNBC guest said that ‘”all governments” will default – it’s only a matter of time.
When asked by “Power Lunch” co-anchor Sue Herera if he would buy Greek debt, Marc Faber said: “No, I’m not interested in government or sovereign debts because I think that all governments will eventually default, including the U.S.”
Shocked, Herera replied, “What! Whoa, whoa, whoa.” Co-anchor Dennis Kneale asked for clarification, “All governments?”
“Mhmm. All governments,” Faber, editor of the Gloom, Boom & Doom Report, explained. “Some like Singapore that have basically no government debt and have huge reserves … in general the problem is the emerging economies today are financially much sounder in terms of debt to GDP than the developed world, including the U.S., Western Europe, the U.K. and so forth.
Faber cited “huge unfunded liabilities” for developed nations and concluded “eventually these governments will all have to print money before they default.”
Given the pessimistic name of Faber’s publication Kneale asked him “if he was selling this kind of panic in March before stocks rose 60 percent.”
Faber said in March he had been interviewed by Bloomberg and encouraged people to buy stocks at that time.