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Marc Faber, publisher of the Gloom, Boom and Doom Report, told Bloomberg Television's Trish Regan and Tom Keene on "Street Smart" today that believing in Ben Bernanke is like believing in Father Christmas.
Faber said, "If you say that if he means what he says, then you believe in Father Christmas… As I said already three years ago, we are going to go with the Fed to QE99."
Faber said, "I think the market is on the high side, corporate profits are inflated and we could easily, from the recent high, May 22 at 1687 on the S&P, drop by 20% to 30%, easily."
Link if video does not play Faber: S&P 500 Could Fall 20% to 30%
Faber is correct. Of course I said the same thing two years ago, and so did Faber. Yes, believing in Bernanke is like believing in Santa (or the tooth fairy), but those believers have fared well to this point (at least from a cherry-picked starting point of March 2009).
Will the believers all suddenly become disbelievers? Hardly. It's never happened before and will not happen this time either.
People who rode the fairy tale up will ride it back down again.
Mike "Mish" Shedlock