"I do not think the market will collapse because of Greece and I do not think this will happen because of 'fiscal gap' as 'fiscal gap' will be," says Faber.
"The market is collapsing as corporate performance will start to disappoint and the global economy will be negligible growth next year and may even shrink. That's why I think the shares will lose at least 20% of the peak, which S & P 500 reached 1,470 points in, "he said.
Faber, who is known for his bearish views, an example disappointing results of Apple, who claim the company 20% of its market capitalization over the past two months and 14% in just the last month.
Series underperformance of corporations, including Amazon, McDonalds and Google, marred investor sentiment in recent weeks.
According to Faber 'fiscal gap' will actually increase the minimum tax "within five years" and some budget cuts "over the next 100 years."
U.S. needs a little pain to patch the budget deficit, he said. "There will be some pain to be completely controlled. The question is whether it will endure a little pain now or risk the complete collapse of society after five years, "says Faber, warning that political will to deal with the budget problems is lacking.
"In a democracy, they will not decide to let a little pain, so problems will be postponed until becoming bigger and bigger."
Faber identifies several problems that hinder the recovery of the U.S. economy and the real estate market, which he said had never been "built in".
Faber warned that it would take a serious reduction in debt levels.
"In the Western world, including Japan, the problem is too much debt. These debts must be done something, and fast, or else you will be forgiven for their growth, "he said.
"I think we spent more than we earned from 1980 to 2007 and now is time to pay," said Faber.
According to investor incentives taken by central banks are useless, and the only way to restructure the financial system through market implosion.
"I think the whole global financial system needs to be rebooted and that this can be done by central banks and by the implosion of the market - or money market or debt market or the stock market," says Faber.
"It will happen, will happen one day and then we would be happy if you still hold 50% of the value of the assets that we have now."
Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.
