Marc Faber warns that further sovereign defaults are ahead. Dubai was just a teaser.
Starting from 0:45 in the video:
- Dubai was just the tip of the iceberg. The ultimate result of the financial crisis will be not just bankrupt banks, but more bankrupt governments.
- Massive U.S. economic stimulus means that U.S. bonds will one day have to offer higher yield than corporate bonds due to default risk.
- China has learned one thing from the U.S. — how to massage and doctor economic statistics.