Tags: bailout

Rogers: Bailout Idea a Disaster

Thursday, 25 Sep 2008 10:37 AM

Treasury Secretary Henry Paulson's proposed bailout plan is "astonishing, devastating, and very harmful for America," internationally-known investor Jim Rogers told The New York Sun.

Rogers says the current monetary climate in Washington reminds him of when then-Fed Chair Arthur Burns refused to let anyone fail.

Rogers insists Washington is making the same mistake again.

"We're in for the worst recession since World War II, as well as higher long-term interest rates, higher inflation, higher taxes, a weaker dollar, and substantially lower stock prices," Rogers says.

Even worse, Rogers believes it's "embarrassing to see how little the presidential candidates know or grasp what's going on, just like the current administration."

But what about the almost 779-point boost in the Dow Jones Industrial Average that lasted for two days? "It's only a matter of time before reality sets in and the market heads down again," Rogers says.

"I wouldn't buy now because it's insane," says Rogers, who believes investors "were foolishly sucked in by hysteria and a buying panic."

Rogers, who bought dollars a couple of months ago, now thinks the greenback rally may have come to an end. He's now buying more Chinese shares.

Rogers' skepticism is shared by many, including former House Speaker Newt Gingrich.

"I think you have a Goldman Sachs chief of staff to the President and the Goldman Sachs secretary of the Treasury, and they convinced the President that the American people ought to send $700 billion to Wall Street," Gingrich told NPR.

"I think it's a very, very bad idea, and I would argue a very un-Republican idea. I don't understand what they think they're doing," Gingrich says.

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Treasury Secretary Henry Paulson's proposed bailout plan is "astonishing, devastating, and very harmful for America," internationally-known investor Jim Rogers told The New York Sun.Rogers says the current monetary climate in Washington reminds him of when then-Fed Chair...
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Thursday, 25 Sep 2008 10:37 AM
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