"Suppose AIG goes bankrupt, it is better that AIG goes bankrupt and we have a horrible two or three years than that the whole US goes bankrupt," Rogers said. "AIG has trillions of dollars of obligations, let them fail, let the courts sort it out and start over. Otherwise we'll never start over."
On Monday, CEO Edward Liddy told CNBC that the insurer is far more stable and secure than it was last fall but acknowledged that it was "difficult to say" if AIG will need even more money from the government in the future.
Bailing out the banks is going to increase the debt spiral and finally cause the destruction of the world's biggest economy, Rogers said.
"I think it's astonishing, they're ruining the US economy, they're ruining the US government, they're ruining the US central bank and they're ruining the US dollar," he said.
"You are watching something in front of our eyes, very historically, which is basically the destruction of New York as a financial center and the destruction of America as the world's most powerful country."
Wall Street and the City of London are going to be "disastrous" for years, like in the 1950s and 1960s, and in 30 years, finance will "dry up and wither away" as we are entering a "long period of hard times," he said.
"Power is shifting now from the money shifters, the guys who trade paper and money, to people who produce real goods. What you should do is become a farmer, or start a farming network," Rogers said.
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REASON FOR AIG BAILOUT?
Among other things, *AIG INSURES THE PENSION TRUST OF THE UNITED STATES
> > CONGRESS*!!
Mr. Rogers is correct. Let these companies either fail or get private investment to prop them up. As for those homeowners who made bad decisions then they should fail also. No more printing money to cover bad decisions.
ReplyDeleteBeing in the financial industry for many years I am convinced that this entire economic crisis has been engineered by this who desire a world government and want to control the world financial system.
get started farming today - www.ediblegardens.com - jim rogers is awesome and totally spot on!
ReplyDeleteJim rogers doesn't believe in the Solar Revolution?
ReplyDeleteMmmm. I dont think it's that easy - i wish it was. If AIG goes to the wall (and it wont thankfully) the financial upheaval at home and around the world will be so severe it will not only lead to massive pick-up in poverty, unemployment 30%+ etc. it will inevitably also cause massive social unrest and possibly wars - and nowhere will be safe as companies and governments fall across the globe!
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