wealthy may be showing signs of spending fatigue after Tiffany’s reported slowing sales

Faber: '100% Chance' of Global Recession:

'via Blog this'What was surprising was his level of certainty that a global recession was coming.

Faber stated that there is a “meaningful slowdown in India and China” that many investors are missing due to the media’s focus on Greece and Spain.

He is also worried that the wealthy may be showing signs of spending fatigue after Tiffany’s reported slowing sales.

“There are more and more stocks that are breaking down — economic sensitive stocks and companies that cater to the high end. That suggests to me the economy is likely to weaken and the huge asset run is likely to come to an end with significant asset deflation.”

While it is worrisome that Faber’s odds of a global recession are “100 percent,” it is hardly as alarming as the scenario laid out by another economist.

Without appearing on CNBC or being known by a scary nickname, Robert Wiedemer did what Marc Faber couldn’t: He accurately predicted the economic collapse that almost sunk the United States.

In 2006, Wiedemer and a team of economists foresaw the coming collapse of the U.S. housing market, equity markets, private debt, and consumer spending, and published their findings in the book America’s Bubble Economy.

But Wiedemer’s outlook for the U.S. economy today makes “Doctor Doom” sound like Mr. Rogers.

Where Faber sees a global recession, Wiedemer sees much more widespread economic destruction.

In a recent interview for his newest book Aftershock, Wiedemer says, “The data is clear, 50 percent unemployment, a 90 percent stock market drop, and 100 percent annual inflation . . . starting in 2012.”