Jim Rogers, the American billionaire, who preferred Asia to USA, gave his advice amid all the global economic turmoil: short stocks, consider commodities. And to heck with European bailouts. Some days after the investor defined the Spanish bailout as "absurd," he amplified on his point that letting any country go bankrupt wouldn't be the worst thing.
Rogers reminded that New York City went bankrupt, the world didn’t come to an end and also Mississippi went bankrupt once, the world hasn’t come to an end. Detroit’s bankrupt, the world hasn’t ended. So if banks in ailing Spain and Greece go bankrupt, bondholders and bankers will lose money. In his opinion, what happens is you reorganize and you start over. He shared his point of view that it’s been happening for a few thousand years and here’s nothing new about it.
Had the U.S. not let Lehman Brothers fail at the start of the 2008 recession, the States would still be suffering, they would still be bailing out everyone in sight. His strategy in the event of a global sell off is Sell short. And the investor said that he is not advocating because he is short, but he is short because in his opinion there are going to be more problems in the world economy in the next year or two. That’s how you protect yourself in times like this, admitted Rogers.
He expressed his concern that the actions taken, are making this situation worse, because bailouts and printing money only add to the debt burden. He shared his opinion, that what he sees happening is more and more bailouts, higher and higher and higher debt. There are going to be a worse recession next year and 2014 because the debt is high. This is not going to be fun, added Rogers.
Source: http://valueslots.com/legendary-investors/jim-rogers/
Jim Rogers, a native of Demopolis, Alabama, is an author, financial commentator and successful international investor. He has been frequently featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times, and most publications dealing with the economy or finance.
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