We have propped up the incompetents

FM: Should they have done nothing in 2008?
Jim Rogers : Yeah. Just like Scandinavia in the early 1990s; America in the 1920s. Competent people reorganize the assets and start over from a sounder base. We have propped up the incompetents. It is horrible economics. I’m not suggesting this would have been fun but instead of having a lost decade or two when the day of reckoning comes—the Fed’s balance sheet has quadrupled in six years—it will be a gigantic mess. Had they let [the banks] fail, it would have cleaned out the system and we would be on a big roll by now.

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%.