Paul B. Farrell: How Bernanke will cause the next crash before 2014

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How Bernanke will cause the next crash before 2014
Commentary: Rich will lose 50% in massive wealth destruction

By Paul B. Farrell, MarketWatch


SAN LUIS OBISPO, Calif. (MarketWatch) — “Massive wealth destruction coming,” warns Hong Kong economist Marc Faber, one of many “Dr. Dooms” we’ve featured over the years.

Faber warned in a recent interview on CNBC: The Super-Rich “may lose up to 50 percent of their total wealth.”

How? “Somewhere down the line we will have a massive wealth destruction. That usually happens either through very high inflation or through social unrest or through war or credit-market collapse.” And as if to punctuate his message, in Barron’s recent “Midyear Roundup,” Faber was asked, “Will things get worse before they get better?”

Answer: “Yes, possibly much worse,” adding “most markets peaked in May 2011.” He expects “further weakness in the second half of the year. Corporate profits will disappoint … stock markets are oversold. The U.S. government-bond market is overbought. The U.S. dollar is overbought, and gold is oversold near term.” Worse, he’s “very negative about the outlook longer term.” .............(more)

The complete piece is at: http://www.marketwatch.com/story/how-bernanke-will-cause-the-next-crash-before-2014-2012-07-17