Jim Rogers warned on downward spiral for dollar and inflation
Posted on 17 October 2010 with 1 comment from readers
Wonderful to look back at what Jim Rogers was saying three years ago. He was short banks before the global financial crisis and down on the dollar.
It is also remarkable how little has changed. His warning on the bond market and dollar still stands. The Fed did not change its spots and carried on printing money in the bailout from the global financial crisis.
Then as now the US economy was facing a slump in housing and auto sales. He predicted major bankruptcies among US house builders within a year or two. That brings the housing market closer to a bottom but it is still not in place.
He forecasts a ’significant’ recession and possibly a bond market collapse. We still have not seen the bond market collapse, though arguably the recession or something very close to it is still with us and about to get worse again. Money printing does not actually work, and the fact that a video from three years ago can easily be confused as about today just goes to prove it!
1 Comment posted by readers:
Nice “Flashback”, Peter.
As I’ve noted on this blog several times, Jim Rogers and Marc Faber are the guys to pay close attention to. Although, as good investors, they don’t reveal all of their cards, it’s important for the average person to realize that these guys don’t deceive. On the other hand, we should never listen to the so-called “investment advice” from George Soros, whose investment commentaries are devious and deceptive.
The Foreclosure Mess in the US:
The foreclosure situation here in the US is rapidly deteriorating with each passing day. Every day, more and more homeowners are making the decision to withhold their monthly mortgage payment. For the homes that have already foreclosed, the banks are now in a panic mode, since many former homeowners are demanding to see the paperwork that authorized the bank to foreclose. Of course, the banks don’t have this paperwork; hence lawsuits will be flying left and right. For an absolutely great read on this topic, go here: http://www.frontlinethoughts.com/article.asp?id=mwo101510
In that commentary, John Mauldin cites some astonishing quotes from the experts in the mortgage business; a summary is below:
“If for whatever reason any of these signatures is skipped, then the chain of title is said to be broken. Therefore, legally, the mortgage note is no longer valid. That is, the person who took out the mortgage loan to pay for the house no longer owes the loan …”
Time to Go Short Against the Banks Again:
It’s a “no-brainer” at this point to short the bank stocks, since they will lose hundreds of billions because of it. JPM today announced that they expect to “lose” $55 billion (which will be paid back to them, via sales of fraudulent MBS to the FED, from newly printed money!). Even with the FED acting as the wealthy grandpa, bank stocks will plummet; an easy way to bet against the banks is to buy the inverse ETFs, namely KRS and SEF
Disclaimer:recent owner of KRS and SEF