Jim Rogers, the legendary investor that has been correct about major financial trends for decades, was interviewed by CNBC. He had some choice, and counter-intuitive, words to give the less than astute folks at CNBC.
Rogers, who has been in front of this mess, and has been correct, for years, says;
"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."
"Bailing out the banks is going to increase the debt spiral and finally cause the destruction of the world's biggest economy," Rogers said."
"Systemic risk is going to be the same in 10 months, 5 years of 10 years if the fundamental problem is not solved," he added.' "The idea that you have too much debt, too much borrowing and too much consumption and you're going to solve that problem with more debt, more consumption and more borrowing? These people are nuts."
"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."
"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."
Jimmie Rogers hasn't been wrong for a long time.
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