Jim Rogers says Bernanke should resign!
Jim Rogers (famous for: Biker and Quantum fund) in a free wheeling interview to MoneyMorning.com says some fearful things. Jim is too famous and has some
Indeed, the U.S. financial debacle is now so ingrained – and a so-called “Super Crash” so likely – that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away – if it ever is, said Rogers.
The end of this crisis “is a long way away,” Rogers said. “In fact, it may not be in our lifetimes.” During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers also said that:
- U.S. Federal Reserve Chairman Ben S. Bernanke should “resign” for the bailout deals he’s handed out as he’s tried to battle this credit crisis.
- That the U.S. national debt – the roughly $5 trillion held by the public- essentially doubled in the course of a single weekend because of the Fed-led credit crisis bailout deals.
- That U.S. consumers and investors can expect much-higher interest rates – noting that if the Fed doesn’t raise borrowing costs, market forces will make that happen.
- And that the average American has no idea just how bad this financial crisis is going to get.
“The next shock is going to be bigger and bigger, still,” Rogers said. “The shocks keep getting bigger because we keep propping things up … [and] bailing everyone out.”
When Jim Rogers speaks…you listen!
Ravinder Makhaik
Not that I’m a pessimist but thats a real dismal scenario which Jim Rogers has painted.
If he were not a famed investor, I would have dismissed it outrightly.
subra1221
Frankly Ravinder, I do not think he is off the mark by too much. Whether it is a single person, a company or a country, you cannot live much above your income for too long. Suddenly Bush springs a 235billion $ bill for Afganistan (perhaps unavoidable) and Iraq (wholly stupid campaign). Now just because China, India and Japan have FMs who will take time to react, US cannot live beyond its means. Bernanke is a great printer – who converts the coniferous trees to green backs. One day we will also realise his greatness perhaps, but we may be dead. Remember but for North Sea Oil, Margaret Tachter would have presided over a bankrupt UK. Just because you were great once, it does not mean you cannot go broke. US is trying hard to go broke – a few banks are just an indicator perhaps…?
Shobha
I agree with subra. If you see horror movies go and see “IOUSA”. It is only in USA will a lender lend 45 times a person’s income as a “Home equity loan”. It is plain stupid. The subprime is not about bad loans – it is about a country living far, far beyond its means. It is time that the Koreans, Chinese, Indians, Singaporeans woke up and stopped their countries wealth keepers from pouring money into US Bonds. Somebody needs to tell the Kind he is naked. Stark naked.
Ravinder Makhaik
Subra1221 & Shobha
Somewhere at the back of my mind I tend to agree with the arguments.
A individual, a company or a nation will go bust it lives beyond its means for too long. There is no denying that.
Its just that having read about the great depression of 1929-30; and the pain that it brought about, I’m only trying to deny the reality that is increasingly becoming visible and Shobha as you put it Stark Naked.
Ravinder Makhaik
The capital erosion that Lehman Brothers has gone through and caught with its pants down in the Mortgage market, Jim Rogers views about a large US Bank on the chopping block are beginning to unveil with the bank expected to announce is third quarter results a week ahead of schedule.
With a government bailout for Fannie and Freddie, fears of a bank collapsing only grew.
Is this the iceberg or only the tip of the iceberg that the financial markets are witnessing?