Posted on 02/10/2009 12:17:28 PM PST by marshmallow
The new financial rescue plan may not work and could even make things worse because it plunges the US further into debt and it is designed by the same people who failed to forecast the crisis and take measures, legendary investor Jim Rogers told CNBC Tuesday.
Treasury Secretary Timothy Geithner will unveil a long-awaited package of measures to help the financial sector at 11 am New York time.
But Rogers said Geithner, who was president of the New York Federal Reserve Bank, "has been dead wrong about everything for 15 years in a row," and so was President Barack Obama's economic advisor Lawrence Summers, who acted as Treasury Secretary at the turn of the century.
"It is mind-boggling to me," Rogers told "Squawk Box Europe."
"If I were on your show 15 weeks in a row and was wrong, you'd probably never invite me back. These guys have been wrong year after year after year consistently and here they are making the same mistakes again. This is not going to solve the problem, it's going to make it worse."
He said he was not contemplating investing into financials, as bankruptcies were still possible, and banks were still trying to find out how affected they were by the crisis.
"What's happening is they've all panicked, cutting back everything, trying to see what they've got," Rogers said.
Big companies such as AIG (NYSE:AIG - News) or Fannie Mae (NYSE: fnm) as well as other US banks don't know how to value their assets, he said.
"Everybody is frozen, trying to figure out ok, what are we worth, what do we do?"
(Excerpt) Read more at finance.yahoo.com ...
He’s right.
They know how to value their assets. All they have to do is sell a few at auction to private buyers. Each one has a history of payment and defaults and the market will value them if they are given a chance.
But, it won’t happen. As soon as there is a market then all the assets will have a known value and it is to ugly to imagine.
I think it’s supposed to.
He’s been saying this for a year now.
Yes. Paulson, now Geithner, all part of the same coterie of people, covering up the derivative disaster they caused.
Now they have even no shyness about “backing” derivative car loan securities. Complete insanity, but this is why maybe Biden, now Geithner, have to claim uncertainty in result and taking chances—because there is no reason to do this.
The big banks that played with these toys should suffer alone. The buying of “toxic debt” is the payoff to foreign holders to continue to finance deficits. Neither party is talking about balancing the budget.
Galt's Gulch?
“But Rogers said Geithner, who was president of the New York Federal Reserve Bank, “has been dead wrong about everything for 15 years in a row,” and so was President Barack Obama’s economic advisor Lawrence Summers, who acted as Treasury Secretary at the turn of the century.
“It is mind-boggling to me,” Rogers told “Squawk Box Europe.”
“If I were on your show 15 weeks in a row and was wrong, you’d probably never invite me back. These guys have been wrong year after year”
It figures that Obama would pick people like this — his objective is NOT to revive the US economy, but to use the crisis as an excuse to push through his socialist agenda.
This is dawning on me. Oh my Lord.
will we have elections?...will we even get our paychecks.....
I fear.......period
I am still waiting for my Hope darnit.
No, no, I was told Geithner was the ONLY person in the USA who was qualified to be Treas. Secretary.
Theodore Dalrymple offers an explanation in his latest essay. “There is no finer way to destroy bourgeois society, said Lenin, than to debauch the currency, a policy that he therefore favoured.” Until these banks can determine who it is that holds the guarantee of risk from default in these derivatives, or credit default swaps, and to collect it, it is hard to accept the notion of any bailout from Uncle.
A match made in liberal heaven.
I wonder if it's possible for POTUS public ratings to go below zero?
Me thinks we are soon to find out.
“Our country is now reminiscent of ‘Mr. H. Dumpty’”
Like Obama, he had a great Fall. Spring ain’t lookin so good, though.
Yeah, no crap. The gov’t (even when it’s running an overall budget surplus) borrows from the bankers to fund operations. Now we’re expected to believe that the banks can borrow money from the government — which is running deficits.
It’s a scam.
Rep. Kanjorski: $550 Billion Disappeared in "Electronic Run On the Banks"
Geithner's plan falls flat (Amateur Hour in D.C.)
Geithner Unveils Revised Bank Plan (Cost now: 2 trillion and climbing)
US Stocks Slide As Geithner Unveils Bank Plan [Dow down 382 pts at the close]
US unveils new $1.5 trillion plan
Its high time to end the bailouts and let the chips fall where they are. Let the imcompetent institutions to fail and the efficient and wisely run institutions prosper.
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