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Bloomberg tracked down Jim Rogers somewhere in Asia and he was none too pleased with the way the U.S. government has been throwing its money around.
On why Bear Stearns was bailed out:
You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses.
This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Mazeratis.
GM: It’s a very unique situation in the markets now. What is your take on the situation and on whether the US is dipping into recession or not?
JR: The US is certainly in a recession. The government says it is not. But governments always lie about this kind of thing. We know that housing is worse than in a recession, we know that automobiles are, machinery is…….
What would you do if you were an investor in America?
I would not own US dollars. I would not own US shares. The bear market will continue at least for a year or so. The US dollar is a terribly flawed currency and I don’t want to own US dollars. I have been moving my assets out of the US dollar and I plan during the course of this year to get the rest of my assets out of the US dollar. America is not a great place to invest anymore.
You make it sound very bad
Well it’s not the end of the world. But let’s go back. In 1918, the UK was perceived as the richest most powerful country in the world. But we know underneath there were lots of problems and within one decade the place was a wreck … but the place did not fall off the face of the earth…….The US is not about to fall off the face of the earth. But if you look for the next 20, 30 or 50 years …… people might say it is in decline.