Thread: Jim Rogers : Bernanke has never been right

'Jim Rogers : Bernanke has never been right. He's been in Washington for 7-8 years. Please go back and do a study of his record. You will see that the man has never ever been right. Don't pay any attention to Bernanke.
The economy is slowing down. We're going to have another recession in the US in late 2011 or 2012 or 2013 and it's going to be worse than the last time around, because America has shot all of its bullets, printing money and spending money we don't have. Be very careful. - in ET Now


Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.'


http://jimrogers1.blogspot.com/



Just thought I would throw this in.

Greenspan and the market evangelists push the financial markets to the brink of disaster by deregulating toxic securities like CDSs, and somehow, Bernanke is to blame for not fixing it all overnight.

The good thing about Bernanke is that, being a scholar of the Great Depression, he understood the threat of deflation and how it can cause vast economic dislocation for a long period of time. If some typical GOP hack were at the head of the FED, God only knows what would have happened after the inevitable Bush Crash.

Soros and Rogers seem to have quite different ideologies and it was surprising to me that they formed a business together (I looked up Rogers history after watching him on CNBC or Fox News a while back). However, Rogers now lives in Singapore and Soros is a Greek national (i.e. both have Run for the Hills using Ironmaiden's words). I would tend to agree with Rogers ideology far more than Soros'. Rogers logic involves pure "household finance" type logic that ignores the military supremacy of the USA with regard to retarding collapse. However, everything has a tipping point.

Originally Posted by Landru Guide Us

Greenspan and the market evangelists push the financial markets to the brink of disaster by deregulating toxic securities like CDSs, and somehow, Bernanke is to blame for not fixing it all overnight.

The good thing about Bernanke is that, being a scholar of the Great Depression, he understood the threat of deflation and how it can cause vast economic dislocation for a long period of time. If some typical GOP hack were at the head of the FED, God only knows what would have happened after the inevitable Bush Crash.

I call bull(*)(*)(*)(*). First off it is merely an article of speculation that we were even at the brink of vast economic dislocation.

Second, Bernanke's thesis is the basis for the axiom that in response to a depression the first and most compelling need is to save the banks and keep them lending.

Bernanke is the reason why we did jack (*)(*)(*)(*) about the real economy since 2007 but managed to save the banks that were "too big to fail".

It is the most ass backwards response imaginable.

You could burn every large commercial bank in the nation to the ground and within two months new arrangements could be made to support the money supply.

Bernanke's approach is all about saving banks from the risks of their own reckless capitalism at the expense not only of the American people and economy but at the risk of impoverishing the entire developed world.

Nobody ever born deserves a warmer seat in hell save Greenspan. Who quit right before the shoe fell.

Originally Posted by loosecannon

You could burn every large commercial bank in the nation to the ground and within two months new arrangements could be made to support the money supply.

It is amazing how many people simply refuse to believe this.
Banks are middle men/women and little else. They are completely replaceable.

The feds and Fed have forced fear down their throat on this point and the masses are digesting it - even though it is costing their children/grandchildren hundreds of billions so the Fed can bail out their buddies.

Originally Posted by DA60

It is amazing how many people simply refuse to believe this.
Banks are middle men/women and little else. They are completely replaceable.

The feds and Fed have forced fear down their throat on this point and the masses are digesting it - even though it is costing their children/grandchildren hundreds of billions so the Fed can bail out their buddies.

Amen. Twice.

I also find it quite amusing that the bailout crowd harping on about how great a top down stimulus is are indeed the same people railing against trickle down economics. Its quite amusing.

Originally Posted by Roon

I also find it quite amusing that the bailout crowd harping on about how great a top down stimulus is are indeed the same people railing against trickle down economics. Its quite amusing.

You probably have no idea how correct you are.

Tho I despised Reagan, his handling of the early 80's inflationary landslide was heroic in stature.

If folks today had the courage of Reagan in his prime this recession would already be fading into memory.

Originally Posted by loosecannon

You probably have no idea how correct you are.

Tho I despised Reagan, his handling of the early 80's inflationary landslide was heroic in stature.

If folks today had the courage of Reagan in his prime this recession would already be fading into memory.

Are you suggesting the top down approach is a good one?

Originally Posted by Roon

Are you suggesting the top down approach is a good one?

No. There are no good approaches on the table.

But if you are stuck with our current paradigm then following the Reagan formula would be the best approach: allow inflation to reside in double digits until we regain competitiveness and then apply fiscal stimulus as needed to spark a recovery.

Any stimulus is voodoo economics. But if you are gonna go that route, do what actually works.