Jim Rogers: .... In the old days, before the central banks had so much power, we used to have panics, and they were usually shorter term, of shorter duration. People would get too exuberant; you would have animal spirit and then the next thing you know, you have a panic. These were usually short and sweet. In 1907, they had the big panic in the US. Washington, New York, everybody got in a lot of trouble but then it didn't last very long.
That's the way the system is supposed to work. When people get in trouble, you clean out the system and then you start over. Competent people take over the assets, reorganize and start over. These days, with central banks and government, what happens is the central bank steps in to save everybody and instead of letting the system clean itself out the way that capitalism is supposed to work, the central banks mess it up, trying to save it. That's why the recession has lasted longer or the depression has lasted longer than it did before. So in answer to the question, yes, central banks make it worse not better. - in the daily bell
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.
JIM ROGERS BLOG is An Unofficial Tracking Blog of Global Investor Wall Street King and author Jim Rogers , his investments speeches interviews ideas and much more....
Suggestions on the solution to the crisis
ReplyDeleteThere is a solution to the crisis that now prevails, but who wants to listen to the proposal?
To Spain and other EU countries must get out of the crisis, the Government and central banks, let the market do its job and not interfere in.
Central banks is always the biggest problem because they always want to play with fire at the taxpayers ' expense.
Again and again, year after year, creates problems for the citizens by print out money and increase inflation.
What role should central banks be?
Those who work in the central bank have no crisis, they care not a whit about the people, as we have seen in many years.
I think we should scrap all central banks and let the market correct itself, it will not be worse than many believe.
The Spanish Government is the best way today to not interfere in the crashed housing market or the banking sector.
Let the banks take the blast and disclose the real figures who, during many years hidden under the carpet.
One can, of course, consider what happens if banks rent out their homes to get revenue?
When will the rents will be lower and the housing market gets its intrinsic value, bubbles hiss out quickly. But, unfortunately, they do not want to do it!
The main problem is that the banks saw the short route to the large profits by lending to private persons who have poor credit ratings; day after day, we see that the problem is worsening in many countries.
Whose fault is it?
It is the central bank errors, such as handing out "free" money to the banking system. " And now, you and I wear shit!
The strangers who call themselves "economists" and works in the State should reduce tax for companies to keep jobs. Wage earners and self-employed persons should be able to borrow money from the banks.
But alas, it was not so, as our dear banks instead lent the largest sum to private persons. They are now with their costumes in their fine Office and take highly paid by the taxpayers and makes things worse.
Swedish Prime Minister said to DI that they would stop lending money, but I say dear friend, why did you not tell it before the chaos?
Now the State has only one choice to lure people with: roll up inflation and hope that people do not understand that they lose their money!
Who decides that my estimated money should be placed in the stock market?
I do not want to but I have choice?
No!
Darios Nasrolahi