Marc Faber :We'll get a bounce from oversold levels, after that we will drift; slowdown in US not good for Asia & resource producers of the world.

Marc Faber -Investment Guru said that first, we'll get a bounce from oversold levels and after that we will drift because the global economy is slowing down at an unprecented pace and the governments in the western world will try to reignite credit growth. However, he feels that they will fail. He further said that Asia is the producer for the US and it is also the region that has very large capital spending.

So, when there is a slowdown in the US, it's not good for the US but it's a disaster for Asia and an even greater disaster for the resource producers of the world. Kirby Daley, Senior Strategist at Newedge Group said that what the capitulation caused and what was causing the issues with policy makers was feeding complacency. So, complacency in the equity markets was causing complacency for the policy makers especially for Bernanke and Paulson to try ad-hoc measures. The capitulation caused the world to wake up and act in concert to get to the heart of the problem.