part 3

5. Finally we can expect some business friendly bullshit from Obama - although its a bit weird to assume that Obama has done anything else but business pro stuff during his entire term. So far he has not done anything about Wallstreet or BP , actually he hired all the people from the Clinton's Jewish gang who were responsible for the mess starting with Summers who created a billions in losses for Harvard with his smart ideas but rather has managed to level up banks together with Rubin for the current mess. He has signed on all Bush things up to torture yet and will likely introduce some corp tax cuts tonight in his state of union. As Marc Faber stated today about Obama that he is intellectually dishonest and his appointments do prove that on any single bit. His latest to elect one of the worst CEO's out their as his chief advisor Immelt from GE is a sad fact of his inability to be a leader but proves he is nothing but a vane puppet. Faber also refuses to join Davos claiming their all liars there - makes sense to me.

excerpt

Faber Sees 10% Drop in S&P 500, Says Stocks Expensive

January 25, 2011, 4:47 PM EST

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By Rita Nazareth and Carol Massar

(Updates with details of previous forecasts.)

Jan. 25 (Bloomberg) -- Marc Faber, who said owning U.S. stocks would prove profitable in March 2009 before the Standard & Poor’s 500 Index began a 91 percent advance, predicted today that the gauge may drop 10 percent because too many investors are bullish.

“A correction is coming,” Faber said in an interview from Zurich with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” “Equities in the U.S. will go down less than emerging markets.” He forecast a drop of as much as 30 percent for equities in developing countries.

The MSCI Emerging Markets Index has increased 134 percent from March 9, 2009. Equities gained as central banks kept interest rates near record lows and governments spent trillions of dollars to spur growth. On Nov. 3, the Federal Reserve said it would buy an additional $600 billion of Treasuries through June to prevent deflation.

Faber said in an interview with Bloomberg Television on March 9, 2009, that it was “very difficult to see a scenario where you wouldn’t make any money” owning stocks over the next 10 years, while also warning the S&P 500 might lose 26 percent before the bear market ended.

The benchmark gauge for American equities began its biggest advance in five decades that day, climbing from 676.53 to 1,295.02 on Jan. 18, 2011.

Record High

In March 2007, he said the S&P 500 was more likely to fall than rise because the threats of faster inflation and slower growth persisted. The S&P 500 then climbed 10 percent to a record 1,565.15 seven months later, and ended the year up 3.5 percent.

Faber, who publishes the Gloom, Boom and Doom report, reiterated his views from a Dec. 30 interview with Bloomberg News when he said that U.S. Treasury bonds are a “suicidal” investment and are likely to decline in the long-term.

After bottoming in December 2008, the 10-year Treasury yield rose as high as 3.9859 percent in April on government measures to stimulate the economy. Concern about a second recession in three years sent yields lower through October. Treasuries rose today, pushing yields on 30-year bonds down the most this year, on speculation President Barack Obama will propose a five-year freeze of non-security discretionary spending to help cap record deficits.

“Treasuries are the best place for the next 10 days,” Faber said. “Not for the longer-term”

--With assistance from Matt Miller in New York. Editor: Chris Nagi

To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net; Carol Massar at cmassar@blooomberg.net