Give me a fucking break. Rogers was right about Commodities, the Dollar, Investment Banks, Banks etc. If he had mastered the lost art of trailing stops, he'd have made a shitload! Calling fundamentals 3 to 10 years in advance takes an exceptional mind and mastery of economics. Dude has hundreds of millions, if not Billions. Proof is in the Pudding. As for his personal life, how the fuck do you pretend to know anything about that?! Now he's a one-time loser shilling his non-existent Beeland fund to "Con" unwitting investors?! Yea, Right! LOL
Oh, I completely agree! But if Government underwrote the bad mortgages to begin with, all the CDS and derivatives on tranches, and by proxy, Corporate Debt, would have never come due! Mortgage debt underlies the entire crisis. Mortgage default > Tranche Default > CDS Tranche Payout > Corporate BK > Corporate CDS payout. Nip it in the bud, with backstopped Mortgages, and that whole negative feedback loop wouldn't happen! That said, I think someone out there is MAKING A FUCKING SHITLOAD off the taxpayer. I highly doubt EVERY BANK was net-short CDS. Whoever went net-long - just a buyer - well, thats where our money is going.
Who says everything will fail? Thats the con Job. No, everything will not fail. There are plenty of banks and finance companies that wern't heavy subprime or short CDS. Those companies take-over from Citi, JP, Goldman, or whoever. Thats it. Yes, unemployment goes to 15%. But thats gonna happen regardless. Besides, we've got Unemployment Benefits. People won't starve. Its not the end of the world.
"Yes, unemployment goes to 15%. But thats gonna happen regardless. Besides, we've got Unemployment Benefits. People won't starve. Its not the end of the world." not if the currency is worthless.
What about all (not just financial) companies that rely on short term financing via the commercial paper market (which came to a stand still)? Unemployment to 15% is one thing (bad enough, but we'd survive), LIBOR to 15% another (apocalypse). Without a working commercial paper market you'd see tens of thousands of companies worldwide be unable to make payroll, pay suppliers, cancel orders etc. 1929 had treasury secretary Mellon propose "Let all the banks fail that need to fail, let's turn off the liquidity spigots, let's get speculation and excesses out of the system." Today we have Jim Rogers saying the same BS. Didn't he say doing the same thing and expecting different results is insanity?