Jim Rogers on Chinese bubbles and Bernanke’s printing press...

Very Interesting....


Jim Rogers on Chinese bubbles and Bernanke’s printing press

The former sidekick of George Soros is never short of an opinion - and in this three-part View from the Markets video interview on the FT Jim Rogers’ doesn’t disappoint.

Some highlights:

The dollar is a flawed currency. America owes the world $13,000bn - a figure that is growing by $1,000 every 15 months. Rogers finds this terrifying and cannot for the life of him think why anyone would want to own a currency that has been debased in this way. He is quite happy to blame Fed chairman Ben Bernanke:

The head of the central bank has been printing money since he got there. This is a man whose whole intellectual career has been spent studying the printing of money — and now America has given him the printing presses. I don’t want to be in a currency like that.

Bernanke, Rogers says, has been a disaster - witness his decision to bale out his friends on Wall St in the summer, cutting interest rates because the stock market had fallen 6 per cent.

What’s he going to do when the market is down 36 per cent? What’s he going to do when there’s a real crisis?

China’s stock market is a potential bubble - but, in Rogers’ view, it isn’t a bubble as yet.

If it keeps going up - say by another 40 per cent by February - then I will have to sell, because then we will have a fully fledged bubble.

I don’t want to sell — I want my daughter to own my Chinese shares some day.

This is from a man who has described the Chinese as the greatest capitalists on the planet. He first bought Chinese stocks in 1999 and says he has never sold a Chinese share. But he is worried the country’s stock market is now headed the way of Japan 20 years ago.

If something happened that were to bring the market back down 30 or 40 per cent, then I’d be a buyer of shares in China. And that would be very good for China - which may sound strange from someone who owns Chinese shares. But if they don’t then it is likely to be a bubble - and bubbles always end very badly.

 

every housing downturn leads to recessions or slowdown in the US(just check history) and thats the reason they cut rates, rogers is too biased towards central banks to see things beyond silly arguments like 'ben likes to print currency'

 

http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.html

 

Don't you all have it backwards? Doesn't every recession generally lead to deflation and a housing downturn, NOT the other way around? If housing prices go down it's a GOOD thing for the economy, kinda like if the price of milk goes down, or computers, or oil. There is no need to prop the housing market up, and to do so is an inefficient distribution of capital.

 

milk, computers and oil arent used to support 2/3 of the economy

 

There is nothing to fear. You have to bite the bullet and BUY and then HOLD and make tons of money as china economy continues to boom and the indexes continue to surge. Thats how money is made in the market.

 

Neither should housing. We've got to be doing more than just selling houses to each other.

 

the fed have policy based on reality not on 'shoulds'

 

okay, you think housing prices are more important to the economy in reality, and I think price of oil, computers, cars, everything that we import is more important to the overall economy IN REALITY. BTW, since you want to talk reality, RE is not responsible for 2/3 of the economy, not even when you add in the scandalous mortgage lending industry and the new home construction.

 

If you owe 13 gazillion... the lender has the problem.

You know...
The more I think of Jimmy forcing his poor daughter to learn Chinese...
The more I think he ought to be locked up.