Marc Faber on the Massive Proliferation of Fraud in China
Based on his deep experience in Hong Kong, Marc Faber — investment analyst and publisher of the Gloom, Boom & Doom Report — is concerned about investing hype in China. In a recent Bloomberg interview, he indicates that fraud is widespread, and that foreigners and likely to take the brunt of the pending fallout. Three of his key thoughts are paraphrased below and the clip itself follows.
- Proliferation of fraud on a massive scale, as we have seen with Chinese companies, is symptomatic of a bubble or a mania… especially when it comes to US investors, because the general public doesn’t really understand China.
- The Mainland Chinese are more careful about cheating in Hong Kong, because – as Faber describes in his own colorful way — they feel a more tangible threat of retribution from misbehavior in Hong Kong.
- Faber believes that the people making the real money in China are the locals, and that it’s much more difficult for foreign investors to become savvy about the market… they are more likely to get fleeced.
Lastly, Faber also covers some of his current thoughts on precious metals. You can view the Bloomberg interview below, which came to our attention via a Bearish News post on how Marc Faber still likes gold and silver.