Faber Update: ‘I Think the Likelihood of Contagion is Very High’

Posted by Marc Faber via Bloomberg

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When asked whether we are actually going to see contagion spread further, Faber said: “I think the likelihood of contagion is very high. And I have to say when you have a borrower, you also have a lender. And it’s actually, in my view, amazing how the EU kept on pumping money into Greece, partly also to bail out their own banks. And suddenly now the debt is no longer manageable.” – read or view the entire article HERE

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Faber warns of Colossal Systemic Risk in Markets – discusses his concerns about the markets.

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UnknownFaber on Grexit : Greece is an irrelevant country in Global Economy

It’s less than 2 percent of global GDP. Economically it has no impact. However the impact, this is the problem for whole world, is that the global financial system is far too big for the real economy, and so whenGreece defaults, it may threaten some institutions like the International Monetary Fund, the European Central Bank, and the banking system. This is the issue. If such a small country can have such a huge impact on the financial system, it means the financial system is very fragile. That’s the problem in my view,”