« Bailout News CNBC Videos: Jim Rogers Says Stop The Bailout Of AIG. Let AIG Go Bankrupt, Not America: Broadcast Tuesday March 3rd »
Jim Rogers appeared almost warm and fuzzy on CNBC Asia last night. Ok, not really. Here are a few of his quotes from the accompanying 4 minute video.
"Suppose AIG goes bankrupt, it is better that AIG goes bankrupt and we have a horrible two or three years than that the whole US goes bankrupt," Rogers said. "AIG has trillions of dollars of obligations, let them fail, let the courts sort it out and start over. Otherwise we'll never start over."
Bailing out the banks is going to increase the debt spiral and finally cause the destruction of the world's biggest economy, Rogers said.
"I think it's astonishing, they're ruining the US economy, they're ruining the US government, they're ruining the US central bank and they're ruining the US dollar," he said.
"You are watching something in front of our eyes, very historically, which is basically the destruction of New York as a financial center and the destruction of America as the world's most powerful country."
Japan's economic "lost decade" was caused by trying to bail out the banks, and the West risks running out of money if it doesn't let the bad banks fail now, Rogers warned.
Systemic risk is going to be the same in 10 months, 5 years of 10 years if the fundamental problem is not solved, he added.
"The idea that you have too much debt, too much borrowing and too much consumption and you're going to solve that problem with more debt, more consumption and more borrowing? These people are nuts."
Wall Street and the City of London are going to be "disastrous" for years, like in the 1950s and 1960s, and in 30 years, finance will "dry up and wither away" as we are entering a "long period of hard times," he said.
"Power is shifting now from the money shifters, the guys who trade paper and money, to people who produce real goods. What you should do is become a farmer, or start a farming network," Rogers said.
Inside we have a 2nd Rogers clip from this morning also where Jimmy discusses his continued bullish views on commodities in more detail.
Related Video:
Gentle Jim Rogers Brings The Asian Pain In Public Beatdown Of Geithner
Jim Rogers Interview On CNBC Squawk Box Europe. Feb.9th.
Tuesday, March 3, 2009 at 2:02PM
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Reader Comments (6)
Here is my nomination: Daily Bail, Spideydouble, and Aint no Bullshiting. This team will do much better than the other idots. You know its true too!
Bernanke grilled on latest AIG bailout; says angry over rescue but government had 'no choice'
Jeannine Aversa, AP Economics Writer
Tuesday March 3, 2009, 2:03 pm EST
Yahoo! Buzz Print WASHINGTON (AP) -- Irritated lawmakers grilled Federal Reserve Chairman Ben Bernanke Tuesday over the latest bailout of American International Group, even as the Fed chief warned that an economic recovery hinges on the government's success in stabilizing shaky financial markets and their major players.
AP - Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington, Tuesday, March 3, 2009, before the ...
"I share your concern, I share your anger," Bernanke told the Senate Budget Committee. "It's a terrible situation, but we're not doing this to bail out AIG or their shareholders. We're doing this to protect our financial system and to avoid a much more severe crisis in our global economy."
The Treasury Department and the Fed on Monday threw a new $30 billion lifeline to the ailing insurance giant, which marked the government's fourth effort to stabilize AIG since September.
Both Democrats and Republicans expressed skepticism over whether the action would work, said they were worried that more taxpayer money will be needed to rescue the company and demanded more accountability and openness.
Bernanke defended the government's repeated rescue attempts on AIG, saying "the failure of major financial firms in a financial crisis can be disastrous for the economy."
The U.S. will be better off "moving aggressively" to solve economic problems because the alternative "could be a prolonged episode of economic stagnation," Bernanke said.
Still, in the last 18 months of the financial crisis, Bernanke said the AIG episode has made him the most angry.
"AIG exploited a huge gap in the regulatory system; there was no oversight of the financial products division," he said. "This was a hedge fund basically that was attached to a large and stable insurance company, made huge numbers of irresponsible bets, took huge losses."
AIG is so big and sprawling, so intertwined with institutions around the globe, that its downfall could set off a vicious chain reaction. Upheaval on such a global scale would plunge the U.S. economy deeper into recession, drive up unemployment and stifle hopes for an economic rebound any time soon.
"We really had no choice," Bernanke said. "Bankruptcy is just not a good option."
But that did little to soothe lawmakers.
"We're no better off," huffed Sen. Jim Bunning, R-Ky. "The bottom line: the Fed and the Treasury will leave the door open for more bailouts in the future."
Sen. Ron Wyden, D-Ore., and others said the identities of banks and other so-called counterparties that do business with AIG and other bailed-out institutions should be made public. Those companies also should have to make some concessions, he added.
"They ought to have some kind of consequences," Wyden said. "There is time for some sunlight ... the public wants to know why are these people so important?"
Sen. Benjamin Cardin, D-Md., worried about the "influx of money to AIG and elsewhere -- will we get the results that we anticipate?"
Bernanke said he was hopeful improvements would eventually come.
"Here is my nomination: Daily Bail, Spideydouble, and Aint no Bullshiting. This team will do much better than the other idots."
Wow. Thanks for the compliment, but there are much better educated and capable people than me to do this. Though having Jim Rogers on any such alternative team could be seen as a conflict of interest, I happen to agree with much of what he says and believe that he would make a fantastic advisor. The point is that there are far better teams to have than the one we now have in place. I agrees with Ain't Bullshittin' that much of this should be common sense, unfortunately Geithner, Bernake, Obama, and Co. don't speak that language.
"Power is shifting now from the money shifters, the guys who trade paper and money, to people who produce real goods. What you should do is become a farmer, or start a farming network."
This Jim Rogers comment seems hilarious but is truer than most realize. I wonder if there are farming apprenticeship programs available in my area. LOL
"We really had no choice," Bernanke said. "Bankruptcy is just not a good option."
Don't you love how Bernake never gives evidence to back up his blanket claims. Yes we did have a choice and the arguments for the bailouts always were and continue to be downright repugnant. Bankruptcy may not be a "good" option, but it is certainly a better option than the one we currently have on the table. I believe we should include other options and examine them all with scrutiny, but I still believe bankruptcy is more compelling and will be proven the better option in the end.
I just put some new bernanke videos up from today.
this new york time's piece is a good wrap-up.
http://www.nytimes.com/2009/03/04/business/economy/04webecon.html?_r=1&hp
To Barrack and Tim,
Just get 'er done.
AIG died the day the music stopped in September, 2008.
AIG is insolvent and beyond the brink.
The turkeys in Washington are now promoting AIG as the new SUB-PRIME insurance company.
Note to AIG's owners--your tax $ are turning red as AIG converts to "Monty Hall" pricing.
At some poing the sacrificial death will have a major impact on the insurance industry, but delaying the funeral will not help.