Posted on 10/10/2008 11:49:20 AM PDT by maccaca
Markets do not trust the governments' plans to keep struggling banks alive and investors will only calm down when the companies with bad assets are allowed to go bankrupt, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Friday.
"The way to solve this problem is to let people go bankrupt," Rogers said.
... The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Rogers warned.
"We're setting the stage for when we come out of this of a massive inflation holocaust," he said.
... We had the worst excesses we had in credit markets in world history. We're going to have to take some pain," Rogers said.
"Many people bought 4-5 houses with no money down and no job… you think we'll just say well, that's too bad, we'll start over and nobody loses their job? Be realistic."
People should not look to the upcoming G7 meeting with the hope that the leaders of the strongest economies will find a solution.
"What they (G7 leaders) need to do is go down the bar and leave the rest of us alone," Rogers said.
What about all the people in countries that minded their manners, saved their money, didn't get overextended and now all of a sudden they're being asked to bail out a bunch of guys on Wall Street who were incompetent at best and some of them crooks?"
"I thought it outrageous that anybody has to step in a bail out a bunch of 29 year olds driving Maseratis," he said.
No, Bush did not think it was a good thing to put illegal aliens into homes.
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