Jim Rogers Speaks Out on Fannie Mae Freddie Mac Rescue
The legendary investor, Jim Rogers, had more than a few hot words to say about the Fannie Mae - Freddie Mac rescue plan announced by Federal Reserve Bank Chairman Ben Bernanke and Secretary of the Treasury Paul Paulson over the weekend.
“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” said Jim Rogers from his new home in Singapore in a Bloomberg interview . “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.
These companies were going to go bankrupt if [the government agencies] hadn’t stepped in to do something, and they should’ve gone bankrupt with all of the mistakes they’ve made. What’s going to happen three years from now, when the situation’s much, much, much worse? They’re ruining what has been one of the greatest economies in the world. There are 300 million Americans that are going to have to pay for this.”
Jim Rogers has been criticized by some yahoo Americans for recently leaving the US, relocating his family to Singapore, and for telling anyone who will listen that it is no longer safe to be holding US Dollar denominated investments, especially US Dollars. However, as one of the most astute investors in the world, who has a few billions to prove it, my belief is that Jim is a smart guy who is merely getting off a train on it’s way to a horrible wreck and is doing what he thinks is the best thing for his family.
We need more Americans, wherever they live, to speak out about the sad direction that our leadership in the Whitehouse and congress have taken our country. Unless drastic changes occur in policies and priorities many more Americans will soon be living an improvised existence.
Jim Rogers has been saying for the past few years that the US has badly managed its economy and was on its way to major troubles. In the end Fannie Mac and Freddie Mae will likely fail with disastrous consequences for the US economy. Their situation becomes ever more unmanageable as housing prices continue to fall. Even the US government doesn’t have the resources to prop up two institutions that have loss exposure running into the trillions of Dollars of home mortgages.
The fast fade in the stock market rally today should give you a good indication as to the direction that Freddie Mac and Fannie Mae are heading in. To me, it looks like their existence as viable financial institutions is just about finished. A full scale panic may be just days away.
The financial meltdown will take no prisoners if Freddie Mac and Fannie Mae go under. Gold and silver will be amoung the few investments to survive the meltdown.
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