Thursday, March 7, 2013
Jim Rogers : the U.S. is making some of the same mistakes Japan did and might be headed down the same path
Tom: You’ve said that the U.S. is making some of the same mistakes Japan did and might be headed down the same path, toward another lost decade or even two. Is there anything that can be done to prevent this?
Jim Rogers : Oh sure there is, you can always take different courses of action, you can try anything, the question is what’s the right course of action. The reason I said that is, in the early 1990s, Japan faced problems such as we’re facing now, and they refused to let people go bankrupt, they propped up the banks, they propped up a lot of companies, and they came to be known as the zombie banks and zombie companies, and as you know the Japanese talk about the 1990s as the lost decade. But now you’re talking about two lost decades. Their stock market is down 75% from where it was 23 years ago. That is not a typo, it’s down 75%. We’re going the same way. We refuse to let people go bankrupt, prop up everybody in sight, and the problem with that is you’re rewarding incompetence, you’re bailing out incompetence, rather than allowing new people, new energy, new capital, and new competition. It’s called the green shoots, from Joseph Schumpeter. One of the great beauties of capitalism is creative destruction, which allows the green shoots of new energy, and new capital, and new ideas to develop. They’re not allowing that in the United States these days, just as Japan refused to allow it for the last 23 years.
- in investorguide
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%.
Who is Jim Rogers ?
James "Jim" Rogers was born in Oct. 19, 1942 and grew up in Demopolis, Alabama .Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendry 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%. They ran what is considered to be one of the first truly global macro hedge funds. . In 1964 he got his first job on Wall Street at Dominick & Dominick in the summer between high school and Yale University, that's how he got his first experience with stocks and bonds. He immediately fell in love with the job. After Oxford, he returned to the U.S. and joined the army in 1970 he returned to Wall Street, working again with Dominick & Dominick. That same year he joined Arnold S. Bleichroeder, where he met George Soros, and together founded the Quantum Fund. This has opened a new era of global macrotrading and inspired numerous imitations and spin-offs. In the book "Money Masters of Our Time," Jim Rogers writes about that time "the most important thing in my life was work. I did not do anything until I had completed my work." To emphasize this professional ethic , it is good to remember that he did not made any holiday for ten years. In 1980, Jim Rogers has decided to "retire" at 37 years. Since then he has spent much of his time traveling and supporting the causes of philanthropic and taking on many high profile roles in the media. However, he continues to be an active investor and media commentator