Posted on 06/29/2012 9:04:00 AM PDT by Perseverando
Leaders of the 17-nation eurozone announced on Friday a plan to rescue their failing banks with cash normally reserved for fledgling governments. When the “recapitalization” (i.e. bailout) plan was unveiled, markets responded very, very well.
However, despite the positive market reaction, at least one veteran businessman thinks the deal is a big mistake. In fact, he thinks it’s only making things worse. According to Quantum Fund co-founder, free market advocate, author, and regular lecturer of finance at the Columbia University Graduate School of Business Jim Rogers, the EU’s decision to recapitalize its banks won’t do anything to fight off the oncoming “financial Armageddon.”
“Just because now you have a way to get them (the banks) to borrow even more money, this is not solving the problem, this is making the problem worse,” Rogers said during an interview on CNBC on Friday.
Strap Yourselves in: Jim Rogers Explains Why We Are Going to Have Financial ArmageddonGerman Chancellor Angela Merkel (AP Photo/Michel Euler)
“People need to stop spending money they don’t have. The solution to too much debt is not more debt. All this little agreement does is give them (banks) a chance to have even more debt for a while longer,” he added.
Rogers went on to argue that the deal does very little to improve the finances of crumbling nations such as Greece and Spain, adding that governments need to stop coming to the rescue of failing banks, even if it results in “financial Armageddon.”
“What would make me very excited is if a few people went bankrupt or a few people started paying off their debt. We are going to have financial Armageddon anyways, when the rest of the world is not going to give these people any more money,” he said.
(Excerpt) Read more at theblaze.com ...
—But Western Europeans...will see their states collapse before they accede to entitlement cutbacks.—
Exactly. The US has the same problem. We’re in this for the full ride to the bottom.
Yup, but before we fall they will grab out 401ks & institute some kind of VAT tax here in the States.
I’ll be cashing out my 401k in full and taking the penalty hit. I’m putting it in PM’s. I see huge tax increases (not to mention hyperinflation) in our future.
I want as little “taxable” income as possible.
I’m out of the stock market in full. I have some rental units I own for income. I figure once the demographics shift for good because of immigration in the next 10 years or so our new overlords are going to do some kind of VAT tax. That sucker will bring in billions of dollars.
—...some kind of VAT tax. That sucker will bring in billions of dollars.—
And since it doesn’t actually “create” dollars, I assume it means it will bring them in from “someplace else” which will be missing billions of dollars. And then there is the huge gray market it will create. Not to mention barter. ;-)
The VAT is a horrible tax, but it’s easy to hide. The public won’t see it. They will start it at 2 or 3 percent, and of course in time it will go up & up.
I'm still waiting for the collapse that was certain in the summer of 2010.
I think they'll still be 'kicking-the-can' down the road when I die.
And just who is going to riot, the “herronvolk’’ or the Saracens? Seems to me while the native born Germans might get pissed, what do the Saracens care if it all falls to pieces? It’ll be like the Islamist crapholes they fled only a little better standard of living.
2 years later and no financial armageddon yet...
If the FED gave us all free money think what our 401k’s would look like, but the bills will eventually come due so who is going to pay them?
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