Apropos Lew’s piece from today is a new Bloomberg interview of Jim Rogers — his reaction to the Fannie and Freddie bailout (video).
For regular Mises.org readers, his statements will not come as a surprise. However, he makes some interesting predictions as to where the next bailouts and regulations could take place in the near future — including commodities.
And like the BSC handout earlier this year, this amounts to little more than socializing losses for Big Business. It’s a war on dollarized assets and on taxpayers.
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That’s kind of confusing — you make it sound like there’s going to be a bailout in commodities. But that can only happen if I choose to pop the commodities bubble by going long in oil.
Person,
Good luck. I’ve already tried something quite like it, counting on my luck to break bad trends. It didn’t work for me, but perhaps your luck is worse enough to make a difference.
On the flip side, my portfolio keeps growing. I have high hopes I will be able to buy bread with the returns, denominated in funny money, in the coming years.
I would not trust anything Rogers says. I invested in his commodity fund and because of the Refco fiasco had to wait 2 1/2 years to get back my initial investment . I actually lost money since it was a bull market. Rogers is living in Asia so he can escape personal liability for his disatrous deals.
Tim,
Glad to see this posted here (I highlighted Roger’s Bloomberg appearance today on my blog as well).
It was great to hear Jim’s reaction to this whole unfolding Fannie/Freddie fiasco. He has been short Fannie for some time, so everybody can take that into account.
Still, I could not find fault with any of the points he made in this clip, and it was interesting to hear him stress, once again, that the government’s plan to “backstop”/bail out the GSEs is a form of socialism or “welfare for the rich”, as he called it.
P.S., Jane sorry to hear about your getting burned in the Refco blowup. I remember reading about it at the time, seems Rogers & Beeland had their clients’ assets frozen as a result of Refco’s bankruptcy and tried to sue to get it back but were unsuccessful? I guess you would know most of the details.
@Jane,
Sorry I didn’t read that carefully before responding.
Seems you did get your initial investment back, but it was a very long, drawn-out process.
Well, I am guessing the two tell tale signs of a bottom will be:
1. the Manhattan real estate market cratering
http://dealbook.blogs.nytimes.com/2008/07/14/bankers-feel-chill-in-ny-real-estate-market/
2. the Trade deficit reversing, which would be nasty in the US and great everywhere else in the world
My hunch says South America is not so bad now a days as compared to the US and since the culture is much closer to the US than China or East Asia, I would suggest going there to make mula.
I agree with Jane
I wouldn’t trust anything he says
Fine, then don’t.
I can’t believe people can be critical of old Jimmy boy!!! He is one of the few straight shooters on wall street. He’s been warning of what has been unfolding for a long time. Jim’s been trying to help you, fool. Wall street is looking out for their best interest, the fed doesn’t have the minerals to do what is needed, and the government is more interested in acting as is nothing is wrong. Jim deseves a standing O. God save Jim Rogers should be U.S.A.’s new national anthem.
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