These Bank Bailouts Just Won't Work!

So says Dr. Marc Faber.

• "The financial crisis has occurred because of government interventions," Faber told "Squawk Box Europe."
  
  "Specifically central banks, or specifically the US Fed, by keeping interest rates artificially low for too long, they created a huge leverage in the system. So the people who created the problem now are in charge to bail out the system and that's why I am very skeptical that it would work," he added.
  
  The governments' efforts to pour money into certain businesses to keep them afloat while letting others fail were arbitrary and increased volatility, he said.
  
  "I think it was good that Lehman went bankrupt but I can't see any reason why AIG
  
  has been supported. Either you bail out everybody or nobody," said Faber.
  
  "The contractions actually serve to build for the future growth, because the weak competitors are eliminated. If you support the weak competitors you essentially penalize the strong competitors and therefore I am very much against these bailout packages."
  
  There is a chance that the second half of this year may be worse than the first half, but markets, which were oversold in November last year, may go a little higher, according to Faber.

And Faber isn't all that bearish against the US dollar!

• "I have shares in Asia, mining stock, exploration companies, physical gold," Faber said.
  
  "As far as currencies are concerned, I think the dollar is a disastrous currency but the others are even worse. I am leaning more towards the view that the dollar could strengthen even more."

Source: http://www.cnbc.com/id/28730368