The US administration’s interventions in the market will not solve problems and will bring about unintended consequences, Marc Faber, author and publisher of the Gloom, Boom & Doom Report, told CNBC on Friday.
President Barack Obama on Thursday proposed new limits on the size and trading practices of big banks, to prevent excessive risk-taking.
“I don’t have a very high opinion of Mr. Obama,” Faber told CNBC’s Squawk Box Europe. “I was negative of Mr. Bush but I think Mr. Obama makes him look like a genius.”
“Basically I think everybody will agree that in an economic system the market solves problems best.”
Faber said he was against repealing the Glass-Steagall Act that was separating investment banks from commercial banks, but he does not think state regulation is the answer.
“When someone tells me the government should regulate the banks, they shouldn’t. It’s a disaster. But they should have interest rates that are high, that curtail speculation,” Faber said.
Source: CNBC, January 22, 2010.
