I like Rogers myself. What he fails to address IMO is how it benefits the US economy if the banking system were to go into a systemic tailspin with a couple of big institutions (e.g. C, WM etc.) going out of business overnight and defaulting on their debt. LIBOR would likely soar to 15% and credit markets freeze up completely as institutions hoard cash, maybe for years to come. How will "the market take care of it all" in that case is a mystery to me.
IMO the FED has sidetracked from its main objective which should be ZERO INFLATION and it is now acting as a liquidity provider to corrupt investment bankers in exchange for worthless paper. American taxpayers will pay the bill at the end of the day with higher prices as the dollar is debased and import prices rise.The problems will intensify when Europe goes in a recession and exports from US decline. If inflation starts going out of control then the damage will be irreversible. However, the positive effect will be a massive wealth redistibution from wealthy lenders to poor borrowers, asomething that has already started but the FED tries to reverse by compansating the lenders for their losses. Jim Rogers may be right but does he have a solution for dealing the corrupt financial institutions? When one collapses, ten show up around the corner. Ron
A real trader? Have you ever noticed how he appears on CNBC and never has a losing trade? He's ALWAYS positioned in the "right" direction? Short financials, banks, homebuilders, long metals and mining, gold, commodities, blah, blah, blah . . . and never a losing trade. Interesting. I recall a friend of mine at Soro's Quantum Fund telling me back in the 80's that they thought that he simply took his partnership capital and invested it in Muni Bonds. No one ever could find out who he allegedly cleared his personal trades through. Bottom line . . . They didn't think that he risked his own personal net worth and never traded. Besides, he was too busy traveling the world on his motorcycle and pumping/promoting his book. We should all be so lucky!
Corrupt investment bankers? You mean you have a problem with the ability of investment funds to leverage mortgage backed securities up to 33:1 ??? What's wrong with that? It's standard practice on the Street. Where is the "corruption" in using leverage at 33:1 on mortgage backed securities? Whatever happened to all of the people on ET that are for FREE markets and want the FED to stay out of the way?
That's pretty freaking funny because he has no idea what he is talking about. U.S. subsidies for growing corn and manufacturing it into Ethanol go into the BILLIONS of dollars to the Farmer. Farmer's are driving Maseratis AND they are getting a "hand-out" from the Govt. Roger's says some of the stupidest things on CNBC and he knows he'll never get called on it because the people that work at CNBC are so freaking "gullible" and think that this guy can do no wrong. How could anyone NOT understand that our Govt. gives out subsidy after subsidy to the American farmer? That's absurd.
Best quote: "What's Bernanke going to do? Get in his helicopter and fly around the world and collect rents from bad loans?" LMAO! Rogers tells the truth as usual. Refreshing.
He's so full of BS and he knows that he can get away with it when appearing on CNBC because the anchors are just a bunch of ignorant "lap-dogs" and simply nod at everything that he says.
Please tell me exactly what he is saying is BS? The dollar is not crashing? Commodities are not rallying? Inflation is not rising fast? He is dead on. The sad thing is people are so freaking brainwashed by thinking this government has a clue that to talk about getting rid of parts of it is suddenly revolutionary or "radical". His view on recession is dead right. There is no reason for bailouts. Allow supply and demand to work. Markets are efficient and always right.
Yes but hes making money hand over fist right? He seems to do very very well. Warren Buffet warned us about all this, he seems to do very well to.