'We're going to have zombie capitalism for the next 15-20 years,' says Jim Rogers
Source: BI-ME , Author: BI-ME staff
Posted: Mon September 14, 2009 4:03 pm
china wholesale market

INTERNATIONAL. Legendary global investor and chairman of Singapore- based Rogers Holdings, Jim Rogers said the Fed and the US Treasury should have let 10 banks fail, not just Lehman Brothers, for the financial system to clean itself up.

Speaking to CNBC Wordwide Exchange today Rogers said "All the government officials and bureaucrats loved the fact Lehman failed, because they could all jump in and support banks."

"This whole problem was not caused by Lehman Brothers or Lehman Brothers failure. Lehman was an effect not a cause."

"The real problem over the past 10-15 years has been that regulators have not let people fail. Had they let people fail we would have solved this problem a long time ago. I don't know why they're not in jail," Rogers said.

Reiterating his view about US monetary policy and their effect on the Dollar, Rogers warned. "I would expect there to be a currency crisis or a semi-crisis this fall or next year. It's crony capitalism, Bernanke and Greenspan have brought crony capitalism to America … but that's not going to solve the world's problems."

"We're going to have zombie capitalism for the next 15-20 years. How long are you going to let the bureaucrats run the thing so we can't have a clean system?," he added.

"Banks have been going bankrupt for a few hundreds years. The way the system works is when somebody fails you let him fail. What we're doing now is we're taking the assets away from the competent people and giving them to incompetent people and telling them now you can compete with competent people with their money."

Addressing debt & consumption and how more of the same can solve the problem, a theme that has become classic Rogers rants, he said: "How can the solution for debt and consumption be more debt and more consumption? How can that be the solution to our problems?"

"What we're doing now is we're taking the assets away from the competent people and giving them to incompetent people and telling them 'now you can compete with competent people with their money,'" Rogers added.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: March 29, 2015
UAE. Deloitte launches 2015 Technology, Media & Telecommunications Predictions for the Middle East; Middle East millennials to spend around US$37 billion on media content; GCC countries to make significant open data advancements in 2015.
date:Posted: March 29, 2015
QATAR. S&P projects real economic growth to average about 4% annually in 2015-2018, sustained by the government's US$220 billion investment program.
date:Posted: March 28, 2015
QATAR. Notwithstanding the weak start for the global economy, Asian economies are expected to continue to grow rapidly in 2015. We expect economic growth to average 5.7% in 2015, the same rate as in 2014.
UAE. Deloitte launches 2015 Technology, Media & Telecommunications Predictions for the Middle East; Middle East millennials to spend around US$37 billion on media content; GCC countries to make significant open data advancements in 2015.
dhgate