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The $700 billion bailout package that Congress is scrambling to pass will only prolong economic woes, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Wednesday.
"History shows these plans don't work. What does work is to let the market clean itself out," Rogers told "Worldwide Exchange".
Federal Reserve Chairman Ben Bernanke, like his predecessor Alan Greenspan and together with Treasury Secretary Henry Paulson have been intervening in the markets and preventing them from acting naturally, he added.
"Capitalism is where the market does its work. These guys, for the last 8 to10 years, have refused to let the market do its work to clean itself out," Rogers said.
(Watch the Jim Rogers interview on CNBC above).
Bernanke and Paulson, have been "dead wrong" for the past two years for telling the public that overall the US economy was fine, "why would anybody listen to them?," he added.
Rogers cited the examples of Russia and South Korea, both marred by crises toward the end of the 1990s, and which afterwards enjoyed years of rapid growth.
"You let things collapse…and you have a clean growth afterwards," he said.
Rogers said he was back into buying Chinese shares over the past weeks as the country's monetary policy had started to loosen up, and that commodities offered better returns than stocks.
8 comments:
In a really crappy markey this am, good news (again) from SQNM.
*Rogers said he was back into buying Chinese shares over the past weeks as the country's monetary policy had started to loosen up, and that commodities offered better returns than stocks.*
Well, China has a high savings rate, 1.8 trillion bucks ready to be deployed to stimulate the economy, 8-10% economic growth, high interest and reserve ratio requirements that have a lot of room to go down... yet it's stockmarket is down to single digit P/E ratios...
Jim might be onto something here... any ideas about good chinese stocks? I know APWR and HOGS are Mark's fave... anything else?
Last night PBS Charlie Rose interviewed Warren Buffet. He is all for the bailout. So who are you going to listen to? Buffet or Rogers? I think everyone speaks for himself and for his own benefits.
Trina Solar ;)
*Last night PBS Charlie Rose interviewed Warren Buffet. He is all for the bailout.*
Of course he is, he just bought a bunch of GS and GE paper, the guy is talking his book...
Buffet said in cnbc yesterday that if the bailout doesn't go through he would have made 2 of his worst investment decisions ever. It's pretty clear why he supports it.
Did Mark jump out of the window today? :) no updates since 8AM...
He's reformulating his "world of shortages" theory. MOS was supposed to be running out of P&K not cutting back on production!
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