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 ...
There was a woman on CNBC yesterday who was insisting that there is, and has been, a market for some of these toxic assets all along. There has been some trading.
The price is "in the low single digit range" ahe said. Then she added...I don't mean 30%, I mean 3%.
So we know what their worth - it's just that the bankers don't want to move them at that price and are waiting for the Government to build a floor under them at, say, for sake of argument...30% or maybe 40%.
Meanwhile, hell freezes over the housing market.
Geithner sure was a hit today....wasn't he? CNBC had a poll on how investors should view his presentation:
a) give him a break and some time to come up with details.
b) no break, his plan was about as clear as his tax returns.
I voted "B"!
Got any brown eggs?
I heard Jim Cramer of “Mad Money” jump up and down and say Geithner should never be appointed. This is disaster.
As long as MSM supports him, no way the MSM will report that. However, if they say he has a 60% approval it probably means he has a 40% approval rating (100 - MSM number).
I have heard about this, got some more information?
‘I am still waiting for my Hope darnit.’
And I am clinging to my ‘change’ desperately....
Oh Mistah Present O'Bummer - I and my thirteen chilluns and five men friens needs a brand new dark chocolate pony or I will just die!
Oh Mistah Present O'Bummer - I needs your empty Hyde Park mansion in Chicago too!
Oh Mistah Present O'Bummer - I needs a lifetimes souply of Night Train and bean pies also!
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