When the Nasdaq began to decline in 2000, most market observers - and especially the apostles of the "new economy" concept- remained convinced that there would be only a brief correction. When US housing stocks began to turn down in 2005, the view was that the US housing sector remained fundamentally sound. Not surprisingly, hardly anyone envisioned the problems in the sub-prime lending industry, with the exception of - among a few others - my friends at Bearing Asset Management. Real problems among the sub-prime lenders emerged in the Fall of 2006. But - aside from Jim Grant and Doug Noland, and my friends at Bearing Asset Management - hardly anyone became concerned about the CDO market.
~ Marc Faber, Publisher, The Gloom, Boom and Doom Report, "Capital Markets Becoming Less Hospitable," August 2007