Tuesday, March 18, 2008

This blog writes itself Jim Rogers on Bear Stearns and AmericanGoy on VISA IPO

There is so much hypocrisy, venality, greed (of the kind which is not good) - I simply go on Reuters.com, or Associated Press, and have about 10 articles that I can write.

Sometimes readers bring me information in comments/emails - this is much appreciated.

Hence, gregbacon (yet again!) in the comments in the last article alerted me to this interview.

This is an interview with Jim Rogers, who seems like a really REALLY cool guy.

The interview is stolen, copied and pasted from here (the blog is called themessthatgreenspanmade.blogspot.com):

On why Bear Stearns was bailed out:

You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses.

This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Mazeratis.

On letting banks fail:

Investment banks have been going bankrupt since the beginning of time. What are you talking about? Let somebody go bankrupt - it's not the end of the world.

You remember what happened in the 70s when they tried this tactic - when Arther Burns kept printing money. Finally, interest rates had to go to over 20 percent and they had to bring in Paul Volcker who had to take draconian measures and put the country into a serious recession. How much more money do you think the Federal Reserve has?

On Alan Greenspan's role in this mess:

The first two central banks in America failed. Between Greenspan and Bernanke - I've written this, it's in my book, long before this happened - they're setting up the failure of the central bank. The demise of the Federal Reserve.

The first two failed, this one is going to fail too - because of Greenspan and Bernanke. Greenspan laid the perfect foundation for Bernanke.

Well, the last paragraph makes me optimistic - lets toast to the FEDs demise. Prosit, cheers, na zdrovya!

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