Marc Faber of the Gloom, Boom, and Doom report appeared on
Bloomberg T.V. recently, discussing the current bull market around U.S.
Treasuries. The host asked if U.S. Treasuries are "the biggest bubble
ever." According to BusinessInsider Faber's response was "yes."
If you me asked about the Nasdaq in December 1999, I would
have said this is the biggest bubble ever. And yet the Nasdaq continued to go
up 30 percent until March 21 2000, and then what happened and how have these
people faired since they invested in the Nasdaq in the final months of 1999 and
early months of 2000? It's been a disaster.
And I think the government bonds bubble will also burst, but
I don't know if it's tomorrow or in three months. I suspect actually maybe
sooner than later, because the consensus is now buy US government bonds.
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