Armed with wit and logic, investment legend Jim Rogers made the case on Bloomberg TV that the United States government's bailouts of failed companies may thrust the global economy into a depression.
"The U.S. is taking assets from competent people and giving them to incompetent people. That's bad economics."
Rogers argued that American International Group (NYSE: AIG) should have been allowed to descend into bankruptcy, and he feels the same about similarly situated businesses. It just doesn't make sense to divert money from healthy, prudently-managed companies and plow it into debt-burdened companies that are being run badly at best and criminally at worst.
There's nothing really surprising about Mr. Rogers' thoughts. Back in August of 2007, Jim Rogers said that Federal Reserve chairman Ben Bernanke was "not very smart" and more recently he's been calling for the abolishment of the Federal Reserve and the firing of Mr. Bernanke. He's been one of the most consistent free market proponents, speaking out against bailout after bailout that has failed to set the stage for long-term stability.
For people who are looking for investment idea from Mr. Rogers, here are a couple: He thinks that oil prices could head back to record levels at some point in the next three to five years, and he also thinks that the current cash-printing policies will lead to "serious, serious inflation down the road," but he also cautioned that returning to the gold standard -- as some similarly minded economic thinkers have suggested -- wouldn't really solve anything.
For people who are looking for investment idea from Mr. Rogers, here are a couple: He thinks that oil prices could head back to record levels at some point in the next three to five years, and he also thinks that the current cash-printing policies will lead to "serious, serious inflation down the road," but he also cautioned that returning to the gold standard -- as some similarly minded economic thinkers have suggested -- wouldn't really solve anything.
Closing Bell: Stock bulls and dollar death (DDRX,GMCR, PEET, SBUX, EBAY, CI, TECD)
So long peak oil, here comes peak uranium
Black Friday expected to be strong, no promises for Christmas
Reader Comments (Page 1 of 1)
3-17-2009 @ 10:38AM
Iridium said...
The global economy can not run with oil higher than $50. Anything above $40 causes massive inflation at the base level and takes too much out of the everyman. Oil above $50 guarantees a massive global depression.
While a few people will make a lot of money I guarantee they will not be around to take advantage of the profits. If oil goes to $200 there will be riots in the streets all over the world.