Farmers Will Drive Ferraris, Not Bankers: Jim Rogers

Discussion in 'Economics' started by Bear-Attack, Aug 14, 2011.

  1. Bob111

    Bob111

    #11     Jun 27, 2012
  2. Bob111

    Bob111

    #12     Sep 27, 2012
  3. Here is what I don't get about the talking heads. Why not make the dramatic prediction but leave off the moronic conclusion that has to be wrong?

    Let's assume you accept the gloom and doom scenario of Faber and Roger ... hype inflation, why would that leave a smart banker out on the street selling apples.

    JP Morgan when asked what the market would do famously said "it will fluctuate". Are the guys at Goldman going to be oblivious to the fact that inflation begins to get out of control? Are the going to stay long the 30 year bond in that circumstance or are they more likely to be short the paper and long the hard asset?

    The average trader on Goldman's or Barclay's government desk will make many times what the average farmer in East Bumfuck will make even as (or as a consequence of) the world falling apart. Everyone at the big financial institutions loves volatility. M&A guys will restructure and merge the victims, others in corporate finance will fund those acquisitions, the trading desk will arb the paper etc, etc, etc.

    I would not pass the hat for bankers just yet.
     
    #13     Sep 27, 2012
  4. I agree with you on the conclusion. My favorite is peak oil. I've seen all the documentaries which show roving gangs. Why do they never show Gone With the Wind and tell you this is how it was before we had oil? We'll still be able to fight a more or less organized civil war if we have to. And that is with no electricity to boot.

    Don't even get me started on Goldbugs.
     
    #14     Sep 27, 2012
  5. mm19

    mm19

    i would agree with you until recently. One of these guys tried to convince me that borrowing 1M and investing in property makes you richer for 2M !! So borrow, whatever you can get and you (with other alike) become too big to fail. same they did and proven right during gfc.

    could be true but this type of behaviour fails at some point. until it fails, they can stay in investmetn banks.
     
    #15     Sep 27, 2012
  6. 377OHMS

    377OHMS

    Unity probability that it is Bearice.
     
    #16     Sep 27, 2012
  7. That's the guy they are giving the boot who will end up shoveling shit on a pig farm. Wouldn't judge The Street's ability to prosper based on his comment.

     
    #17     Sep 27, 2012
  8. ntt

    ntt

    Great point. People who peddle "investing in futures" never give a single thought to roll effects. But good luck getting that point across to many traders who think that because the futures are correlated with the underlying, they work as an investment.
     
    #18     Sep 28, 2012
  9. The "roll" in many of these instruments is the ultimate transaction cost. It is sickening how these talking heads leave this out of the equation. The resulting presentation then equals pure BS.

     
    #19     Sep 28, 2012
  10. TGregg

    TGregg

    JFC! That "healthy man" better take some salt pills. Mayo Clinic says 3 liters per day is the healthy goal.
     
    #20     Sep 28, 2012