Faber - Brace For Financial Destruction & Sovereign Defaults

"Eric King:  “We’ve been talking about the one quadrillion dollars of derivatives here at KWN recently, Marc.  Does the sheer amount of derivatives risk the danger of a 2008 style collapse?  Is that (risk) still out there?”

Faber:  “Yes.  If you look back at 2007, before the crisis occurred, and today, the level of credit in the world has increased.  The imbalances have also increased. 

 

And the sovereign credit of countries has essentially diminished in quality.  Now we have a huge bond market rally because of artificially low interest rates, but I think the next stage in the rolling crisis that we will have will be sovereign defaults.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/6_Faber_-_Brace_For_Financial_Destruction_%26_Sovereign_Defaults.html