Forget about Greece and the rest of the PIGS - it's about the big swines

'Power Lunch' Guest Says No to Greek Debt, Warns All Governments Will Default
Marc Faber tells CNBC that market turmoil caused by Europe is a 'correction,' praises soundness of emerging economies.
By Julia A. Seymour Business & Media Institute
2/10/2010 3:11:24 PM
Just one day after Treasury Secretary Timothy Geithner said the U.S. wouldn’t lose its “top-notch” credit rating, one CNBC guest said that ‘”all governments” will default – it’s only a matter of time. When asked by “Power Lunch” co-anchor Sue Herera if he would buy Greek debt, Marc Faber said: “No, I’m not interested in government or sovereign debts because I think that all governments will eventually default, including the U.S.”

Shocked, Herera replied, “What! Whoa, whoa, whoa.” Co-anchor Dennis Kneale asked for clarification, “All governments?”

“Mhmm. All governments,” Faber, editor of the Gloom, Boom & Doom Report, explained. “Some like Singapore that have basically no government debt and have huge reserves … in general the problem is the emerging economies today are financially much sounder in terms of debt to GDP than the developed world, including the U.S., Western Europe, the U.K. and so forth.

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Comment: Faber talks about the obvious. Just do the math or rather apply simple arithmetic -- a discipline which has fallen out of fashion but in business it is more useful than calculus. Have you ever met a mathematical economist who can quickly verify if the restaurant bill is correct? Well, that is the problem we have now with governments and central bankers nowadays.