Jim Rogers: Commodities have another decade or longer to run
Posted: October 03, 2008, 12:00 PM by Peter Koven
With global growth slowing and commodity stocks collapsing, investors are all asking: is the big resource boom coming to end?
Not even close, according to one of its biggest backers.
Speaking at the Toronto CFA Society's annual forecast dinner, high-profile investor Jim Rogers laid out the case that commodity prices are going to stay elevated for a long time, regardless of the unprecedented turmoil in the United States.
Mr. Rogers, who famously spent three years driving around the world, argued that most people still "don't know anything" about commodities despite the boom of the last five years (even saying that less than 100 of the world's 70,000 mutual funds are focused on them). He pointed out that other resource booms have lasted 15 to 23 years, and there is no reason to think this one will be any different. He figures it could run to around 2018 or 2020.
Of course, the main reason he cited is China. He said the 21st century belongs to the Chinese the way the 20th belonged to America, and practically pleaded with the audience to teach their kids Mandarin. He added that three billion people in Asia want to live like we do, and this will continue to constrain supplies well into the future.
"In China, you're still allowed to sell short," he chuckled, getting a big laugh from the audience.
As far as the latest market turmoil goes, he acknowledged that a U.S. recession could keep pushing everything down in the short-term, but eventually fundamentals will win out.
"My little girls have never owned a stock or bond. They only own commodities," he said.
And for all the Wall Street MBAs that are now out of work, Mr. Rogers has some advice: "Learn how to drive a tractor."
http://network.nationalpost.com/np/blogs/fpposted/archive/2008/10/03/jim-rogers-commodities-have-another-decade-or-longer-to-run.aspx
06/10/2008
According to Jim, commodities will have another 10 years to run until 2018 ro 2020.
Monday, October 6, 2008
Paulson punt
Paulson punt
By Emiliya Mychasuk and Emiko Terazono
Published: October 2 2008 03:00 Last updated: October 2 2008 03:00
Stellar returns in his bets against big banks leave John Paulson 's hedge funds way ahead, but did Paulson & Co cover short positions on HBOS as the discount to the offer from Lloyds TSB narrows? As of September 30 - its latest filing - Paulson seemed to be betting on the deal not happening, in spite of the best efforts of Gordon Brown. It had a short position of 0.95 per cent on HBOS and 1.67 per cent on Lloyds TSB.
http://www.ft.com/cms/s/0/cc9594b0-901b-11dd-9890-0000779fd18c.html
06/10/2008
John Paulson still short on UK banks.
By Emiliya Mychasuk and Emiko Terazono
Published: October 2 2008 03:00 Last updated: October 2 2008 03:00
Stellar returns in his bets against big banks leave John Paulson 's hedge funds way ahead, but did Paulson & Co cover short positions on HBOS as the discount to the offer from Lloyds TSB narrows? As of September 30 - its latest filing - Paulson seemed to be betting on the deal not happening, in spite of the best efforts of Gordon Brown. It had a short position of 0.95 per cent on HBOS and 1.67 per cent on Lloyds TSB.
http://www.ft.com/cms/s/0/cc9594b0-901b-11dd-9890-0000779fd18c.html
06/10/2008
John Paulson still short on UK banks.
Contrarian becomes pessimist
Contrarian becomes pessimist
William Hanley, Financial Post
Published: Friday, October 03, 2008
It's 8:20 a. m. and legendary investor Jim Rogers, after only a couple of hours' sleep following a red-eye flight from Frankfurt, is pedalling hard on the stationary bike at the Toronto Sheraton Centre gym and giving his hard-eyed view of the world. It is a view that is always provocative and often contrarian.
"I'm pessimistic because America is in recession and that's having an effect on Europe and Asia," he says, adding that the recession will last longer than most and be deeper than most because the U. S. government keeps making mistakes by bailing out one entity after another.
"The 29-year-olds on Wall Street and Bay Street have been driving Maseratis," Rogers says. "That's about to change. All these guys are going to have to learn to drive taxis. "
But the 65-year-old, Alabama-born investor -- who made his reputation as George Soros's Quantum Fund partner in the 1970s and who famously called the current commodities boom -- is not pessimistic about the future of natural resources and, by extension, Canada and the Canadian dollar.
"Canada is a much better place to be than America," he says, while conceding the U. S. recession could hit the country's industrial heartland.
Rogers was in Toronto yesterday --before taking another red-eye flight to his new home in Singapore -- to participate in a noon CEO roundtable and then speak at the Toronto Society of Financial Analysts' annual forecast dinner.
That he moved his young family to Singapore in June, 2007, and sold his Upper West Side New York home for US$16-million speaks to his view that Wall Street will be in decline for at least a generation and that Asia is on the rise. His children speak Chinese. So Singapore, besides being a great place to live, is a good place for them to develop their skills in the language of the future.
"The new financial centre could be in Shanghai or maybe in Singapore," Rogers says. "I really don't know where, but it's shifting from New York and London toward Asia."
So if the U. S. economy is in decline and the markets are struggling mightily, how is one of the world's most successful investors employing his considerable fortune? Commodities He continues to own the commodities themselves, not commodities stocks, because the current drop in natural-resource prices is just a correction that could last a quarter, a half or even a year. He notes that oil has had three corrections of 40% or more since its bull market started in 1990 and come back each time.
Stocks He has been buying shares in some airlines, "a disaster area that's close to a bottom," and some beaten-up Chinese stocks. The planes he flies on are mostly full and fares are soaring. "Airline stocks will shine in the next bull market -- if we have a bull market." Meanwhile, he is monitoring auto stocks, which may become the next disaster area over the coming years. Currencies Rogers is holding on to the Canadian dollars -- "one of the soundest fundamental currencies" -- he began buying years ago when he saw the commodities boom unfolding against a much-improved Canadian fiscal backdrop. "And I will be buying more along the line." But recently he has been buying Swiss francs and yen.
Bonds He has been shorting the U. S. long bond in the belief that the growing mountain of U. S. debt and the necessity to print money to finance it means bonds have made a long-term top. "Bonds will be a terrible place to be for many years to come."
And for years to come, Rogers says, water treatment, agriculture and Chinese tourism will be good places to be. China and India, especially, have huge water problems, food inventories are falling even as farmland is taken out of production and 1.3 billion Chinese are now able to travel freely in the world.
Those are the next big things. The best thing to do now in these clamorous markets, Rogers tells a reporter, might be to do nothing unless you have to. "You might just want to head to the beach."
http://www.financialpost.com/story.html?id=857919
William Hanley, Financial Post
Published: Friday, October 03, 2008
It's 8:20 a. m. and legendary investor Jim Rogers, after only a couple of hours' sleep following a red-eye flight from Frankfurt, is pedalling hard on the stationary bike at the Toronto Sheraton Centre gym and giving his hard-eyed view of the world. It is a view that is always provocative and often contrarian.
"I'm pessimistic because America is in recession and that's having an effect on Europe and Asia," he says, adding that the recession will last longer than most and be deeper than most because the U. S. government keeps making mistakes by bailing out one entity after another.
"The 29-year-olds on Wall Street and Bay Street have been driving Maseratis," Rogers says. "That's about to change. All these guys are going to have to learn to drive taxis. "
But the 65-year-old, Alabama-born investor -- who made his reputation as George Soros's Quantum Fund partner in the 1970s and who famously called the current commodities boom -- is not pessimistic about the future of natural resources and, by extension, Canada and the Canadian dollar.
"Canada is a much better place to be than America," he says, while conceding the U. S. recession could hit the country's industrial heartland.
Rogers was in Toronto yesterday --before taking another red-eye flight to his new home in Singapore -- to participate in a noon CEO roundtable and then speak at the Toronto Society of Financial Analysts' annual forecast dinner.
That he moved his young family to Singapore in June, 2007, and sold his Upper West Side New York home for US$16-million speaks to his view that Wall Street will be in decline for at least a generation and that Asia is on the rise. His children speak Chinese. So Singapore, besides being a great place to live, is a good place for them to develop their skills in the language of the future.
"The new financial centre could be in Shanghai or maybe in Singapore," Rogers says. "I really don't know where, but it's shifting from New York and London toward Asia."
So if the U. S. economy is in decline and the markets are struggling mightily, how is one of the world's most successful investors employing his considerable fortune? Commodities He continues to own the commodities themselves, not commodities stocks, because the current drop in natural-resource prices is just a correction that could last a quarter, a half or even a year. He notes that oil has had three corrections of 40% or more since its bull market started in 1990 and come back each time.
Stocks He has been buying shares in some airlines, "a disaster area that's close to a bottom," and some beaten-up Chinese stocks. The planes he flies on are mostly full and fares are soaring. "Airline stocks will shine in the next bull market -- if we have a bull market." Meanwhile, he is monitoring auto stocks, which may become the next disaster area over the coming years. Currencies Rogers is holding on to the Canadian dollars -- "one of the soundest fundamental currencies" -- he began buying years ago when he saw the commodities boom unfolding against a much-improved Canadian fiscal backdrop. "And I will be buying more along the line." But recently he has been buying Swiss francs and yen.
Bonds He has been shorting the U. S. long bond in the belief that the growing mountain of U. S. debt and the necessity to print money to finance it means bonds have made a long-term top. "Bonds will be a terrible place to be for many years to come."
And for years to come, Rogers says, water treatment, agriculture and Chinese tourism will be good places to be. China and India, especially, have huge water problems, food inventories are falling even as farmland is taken out of production and 1.3 billion Chinese are now able to travel freely in the world.
Those are the next big things. The best thing to do now in these clamorous markets, Rogers tells a reporter, might be to do nothing unless you have to. "You might just want to head to the beach."
http://www.financialpost.com/story.html?id=857919
Friday, October 3, 2008
Canada Will Feel U.S. Problems, But Won't Suffer as Much, U.S. Investment Guru Says
Canada Will Feel U.S. Problems, But Won't Suffer as Much, U.S. Investment Guru Says
10/02/08 06:02 pm (EST)
(CEP NEWS) Toronto - Canada's economy should feel some side-effects from America's weak economy, but won't suffer as much as the U.S. system, author and investment guru Jim Rogers told reporters before a speech in Toronto Thursday."Canada's better positioned than most places in the world right now," Rogers told a gathering of reporters a few hours ahead of his scheduled speech to the Toronto Chartered Financial Accountants Society.
The former Wall Street veteran said Canada won't suffer as much as the U.S. because the last few federal governments have managed Canada's budget and trade matters better than the White House, and Canada retains strong commodity supplies.
"I'd rather be long on zinc than short on investment banks," said Rogers, noting that while commodity prices are undergoing a correction right now, there will eventually be commodity shortages after the global demand for them rebounds following the U.S. economic recovery.
Rogers, who co-founded Quantum Fund with investing heavyweight George Soros, criticized the massive U.S. bailout plan, saying the financial system must work through its own problems in a true free-market way rather than through government intervention.
"You get over your pain even though it's serious pain and then you progress," Rogers said. "The American government is getting it wrong ... and bailing out the wrong people." He accused the U.S. lawmakers behind the bailout plan of trying to "bail out their banking friends."
He predicted that in two years, when other problems crop up in the U.S. financial system, "the American government will be out of bullets."
Rogers pronounced that "America is in a recession and the world is in a recession." He also placed much of the blame for the current U.S. crisis on former Federal Reserve Chairman Alan Greenspan, and said Greenspan's successor Ben Bernanke "doesn't know anything about markets...he doesn't know anything about anything except printing money."
U.S. presidential candidates Barack Obama and John McCain were also in Rogers's firing line.
"Neither one of them has a clue. Both would be disastrous" for the U.S. economic recovery, he said.
Rogers said he's putting his money into airline stocks, Swiss francs, Japanese yen and agriculture stocks as long-term plays while shorting U.S. government long bonds.
He favours airline stocks because he believes demand for air travel as a global essential service industry will make a comeback once the airline sector emerges leaner and stronger from the current downturn.
http://www.forextv.com/Forex/News/ShowStoryCEP.jsp?seq=130612
03/10/2008
Jim prefers to put his money on Zinc rather that short investment banks.
10/02/08 06:02 pm (EST)
(CEP NEWS) Toronto - Canada's economy should feel some side-effects from America's weak economy, but won't suffer as much as the U.S. system, author and investment guru Jim Rogers told reporters before a speech in Toronto Thursday."Canada's better positioned than most places in the world right now," Rogers told a gathering of reporters a few hours ahead of his scheduled speech to the Toronto Chartered Financial Accountants Society.
The former Wall Street veteran said Canada won't suffer as much as the U.S. because the last few federal governments have managed Canada's budget and trade matters better than the White House, and Canada retains strong commodity supplies.
"I'd rather be long on zinc than short on investment banks," said Rogers, noting that while commodity prices are undergoing a correction right now, there will eventually be commodity shortages after the global demand for them rebounds following the U.S. economic recovery.
Rogers, who co-founded Quantum Fund with investing heavyweight George Soros, criticized the massive U.S. bailout plan, saying the financial system must work through its own problems in a true free-market way rather than through government intervention.
"You get over your pain even though it's serious pain and then you progress," Rogers said. "The American government is getting it wrong ... and bailing out the wrong people." He accused the U.S. lawmakers behind the bailout plan of trying to "bail out their banking friends."
He predicted that in two years, when other problems crop up in the U.S. financial system, "the American government will be out of bullets."
Rogers pronounced that "America is in a recession and the world is in a recession." He also placed much of the blame for the current U.S. crisis on former Federal Reserve Chairman Alan Greenspan, and said Greenspan's successor Ben Bernanke "doesn't know anything about markets...he doesn't know anything about anything except printing money."
U.S. presidential candidates Barack Obama and John McCain were also in Rogers's firing line.
"Neither one of them has a clue. Both would be disastrous" for the U.S. economic recovery, he said.
Rogers said he's putting his money into airline stocks, Swiss francs, Japanese yen and agriculture stocks as long-term plays while shorting U.S. government long bonds.
He favours airline stocks because he believes demand for air travel as a global essential service industry will make a comeback once the airline sector emerges leaner and stronger from the current downturn.
http://www.forextv.com/Forex/News/ShowStoryCEP.jsp?seq=130612
03/10/2008
Jim prefers to put his money on Zinc rather that short investment banks.
Recapitalise the banking system
Recapitalise the banking system
By George Soros
Published: October 2 2008 03:00 Last updated: October 2 2008 03:00
George Soros: The emergency legislation before Congress was ill-conceived - or, more accurately, not conceived at all. As Congress tried to improve what Treasury requested, an amalgam plan has emerged that consists of Treasury's original troubled asset relief programme and a quite different capital infusion programme in which the government invests in and stabilises weakened banks and profits from the economy's eventual improvement. The capital infusion approach will cost taxpayers less in future years and may even make money for them.
Two weeks ago the Treasury did not have a plan ready - that is why it had to ask for total discretion in spending the money. But the general idea was to bring relief to the banking system by relieving banks of their toxic securities and parking them in a government-owned fund so that they would not be dumped on the market at distressed prices. With the value of their investments stabilised, banks would then be able to raise equity capital.
The idea was fraught with difficulties. The toxic securities in question are not homogenous and in any auction process the sellers are liable to dump the dregs on to the government fund. Moreover, the scheme addresses only one half of the underlying problem - the lack of credit availability. It does very little to enable house owners to meet their mortgage obligations and it does not address the foreclosure problem. With house prices not yet at the bottom, if the government bids up the price of mortgage-backed securities, the taxpayers are liable to loose; but if the government does not pay up, the banking system does not experience much relief and cannot attract equity capital from the private sector.
A scheme so heavily favouring Wall Street over Main Street was politically unacceptable. It was tweaked by the Democrats, who hold the upper hand, so that it penalises the financial institutions that seek to take advantage of it. The Republicans did not want to be left behind and imposed a requirement that the tendered securities should be insured against loss at the expense of the tendering institution. The rescue package as it is now constituted is an amalgam of multiple approaches. There is now a real danger that the asset purchase programme will not be fully utilised because of the onerous conditions attached to it.
Nevertheless, a rescue package was desperately needed and, in spite of its shortcomings, would change the course of events. As late as September 22, Treasury secretary Hank Paulson hoped to avoid using taxpayers' money; that is why he allowed Lehman Brothers to fail. Tarp establishes the principle that public funds are needed and, if the present programme does not work, other programmes will be instituted. We will have crossed the Rubicon.
Since Tarp was ill-conceived, it is liable to arouse a negative response from America's creditors. They would see it as an attempt to inflate away the debt. The dollar is liable to come under renewed pressure and the government will have to pay more for its debt, especially at the long end. These adverse consequences could be mitigated by using taxpayers' funds more effectively.
Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of 12 - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.
http://www.ft.com/cms/s/0/066324b0-901b-11dd-9890-0000779fd18c.html
03/10/2008
What was written by George Soros is exactly the same message that John Paulson is advocating. Instead of getting the bad assets off the ballance sheets of banks, it is better to inject cash into the banks itself. I am not sure what sis the rational behind it.
By George Soros
Published: October 2 2008 03:00 Last updated: October 2 2008 03:00
George Soros: The emergency legislation before Congress was ill-conceived - or, more accurately, not conceived at all. As Congress tried to improve what Treasury requested, an amalgam plan has emerged that consists of Treasury's original troubled asset relief programme and a quite different capital infusion programme in which the government invests in and stabilises weakened banks and profits from the economy's eventual improvement. The capital infusion approach will cost taxpayers less in future years and may even make money for them.
Two weeks ago the Treasury did not have a plan ready - that is why it had to ask for total discretion in spending the money. But the general idea was to bring relief to the banking system by relieving banks of their toxic securities and parking them in a government-owned fund so that they would not be dumped on the market at distressed prices. With the value of their investments stabilised, banks would then be able to raise equity capital.
The idea was fraught with difficulties. The toxic securities in question are not homogenous and in any auction process the sellers are liable to dump the dregs on to the government fund. Moreover, the scheme addresses only one half of the underlying problem - the lack of credit availability. It does very little to enable house owners to meet their mortgage obligations and it does not address the foreclosure problem. With house prices not yet at the bottom, if the government bids up the price of mortgage-backed securities, the taxpayers are liable to loose; but if the government does not pay up, the banking system does not experience much relief and cannot attract equity capital from the private sector.
A scheme so heavily favouring Wall Street over Main Street was politically unacceptable. It was tweaked by the Democrats, who hold the upper hand, so that it penalises the financial institutions that seek to take advantage of it. The Republicans did not want to be left behind and imposed a requirement that the tendered securities should be insured against loss at the expense of the tendering institution. The rescue package as it is now constituted is an amalgam of multiple approaches. There is now a real danger that the asset purchase programme will not be fully utilised because of the onerous conditions attached to it.
Nevertheless, a rescue package was desperately needed and, in spite of its shortcomings, would change the course of events. As late as September 22, Treasury secretary Hank Paulson hoped to avoid using taxpayers' money; that is why he allowed Lehman Brothers to fail. Tarp establishes the principle that public funds are needed and, if the present programme does not work, other programmes will be instituted. We will have crossed the Rubicon.
Since Tarp was ill-conceived, it is liable to arouse a negative response from America's creditors. They would see it as an attempt to inflate away the debt. The dollar is liable to come under renewed pressure and the government will have to pay more for its debt, especially at the long end. These adverse consequences could be mitigated by using taxpayers' funds more effectively.
Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of 12 - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.
http://www.ft.com/cms/s/0/066324b0-901b-11dd-9890-0000779fd18c.html
03/10/2008
What was written by George Soros is exactly the same message that John Paulson is advocating. Instead of getting the bad assets off the ballance sheets of banks, it is better to inject cash into the banks itself. I am not sure what sis the rational behind it.
Thursday, October 2, 2008
Bailout Would Only Prolong Crisis: Jim Rogers
Bailout Would Only Prolong Crisis: Jim Rogers
The $700 billion bailout package that Congress is scrambling to pass will only prolong economic woes, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Wednesday.
"History shows these plans don't work. What does work is to let the market clean itself out," Rogers told "Worldwide Exchange".
Federal Reserve Chairman Ben Bernanke, like his predecessor Alan Greenspan and together with Treasury Secretary Henry Paulson have been intervening in the markets and preventing them from acting naturally, he added.
"Capitalism is where the market does its work. These guys, for the last 8 to10 years, have refused to let the market do its work to clean itself out," Rogers said.
Bernanke and Paulson, have been "dead wrong" for the past two years for telling the public that overall the US economy was fine, "why would anybody listen to them?," he added.
Rogers cited the examples of Russia and South Korea, both marred by crises toward the end of the 1990s, and which afterwards enjoyed years of rapid growth.
"You let things collapse…and you have a clean growth afterwards," he said.
Rogers said he was back into buying Chinese shares over the past weeks as the country's monetary policy had started to loosen up, and that commodities offered better returns than stocks.
http://www.cnbc.com/id/26969555
The $700 billion bailout package that Congress is scrambling to pass will only prolong economic woes, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Wednesday.
"History shows these plans don't work. What does work is to let the market clean itself out," Rogers told "Worldwide Exchange".
Federal Reserve Chairman Ben Bernanke, like his predecessor Alan Greenspan and together with Treasury Secretary Henry Paulson have been intervening in the markets and preventing them from acting naturally, he added.
"Capitalism is where the market does its work. These guys, for the last 8 to10 years, have refused to let the market do its work to clean itself out," Rogers said.
Bernanke and Paulson, have been "dead wrong" for the past two years for telling the public that overall the US economy was fine, "why would anybody listen to them?," he added.
Rogers cited the examples of Russia and South Korea, both marred by crises toward the end of the 1990s, and which afterwards enjoyed years of rapid growth.
"You let things collapse…and you have a clean growth afterwards," he said.
Rogers said he was back into buying Chinese shares over the past weeks as the country's monetary policy had started to loosen up, and that commodities offered better returns than stocks.
http://www.cnbc.com/id/26969555
Wednesday, October 1, 2008
Rogers Says U.S. Should Let Banks Fail, Clean Out System
Rogers Says U.S. Should Let Banks Fail, Clean Out System
Sept. 30 (Bloomberg) -- Jim Rogers, chairman of Singapore-based Rogers Holdings, talks with Bloomberg's Carol Massar and Erik Schatzker from Frankfurt about the proposed $700 billion bank rescue package, his position that allowing banks to fail will provide a necessary cleansing of the financial system, and investment strategy.
"Clowns" in Washington doing "wrong thing."
Consequences of not implementing rescue plan0
Criticism of Paulson, Bernanke, Tim Geithner
Rogers' strategy: "sitting and watching"
Rogers' plan to "sell" rally if plan passes
Running time 07:50
Last Updated: September 30, 2008 08:09 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQBlHJQcqQbQ
mms://media2.bloomberg.com/cache/vTl1McjXM2JA.asf
tjhinkh 01/10/2009
By rescuing Wall Street, the recovey period will be longer. History have shown that in 1970
Wall Street was bailed out and the 1970 went through terrible times. Japan bail out their
banks in 1990 and the are still talking that 1990 is a lost generation.
But Korea and Russia just let it fail and pubish those people that did wrong. They have
a recession for a year or two and they are now a thring nations.
If the US government bail the market, there will be a rally and Jim is planning to short it
in the future. One week, one month or one year later.
Sept. 30 (Bloomberg) -- Jim Rogers, chairman of Singapore-based Rogers Holdings, talks with Bloomberg's Carol Massar and Erik Schatzker from Frankfurt about the proposed $700 billion bank rescue package, his position that allowing banks to fail will provide a necessary cleansing of the financial system, and investment strategy.
"Clowns" in Washington doing "wrong thing."
Consequences of not implementing rescue plan0
Criticism of Paulson, Bernanke, Tim Geithner
Rogers' strategy: "sitting and watching"
Rogers' plan to "sell" rally if plan passes
Running time 07:50
Last Updated: September 30, 2008 08:09 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQBlHJQcqQbQ
mms://media2.bloomberg.com/cache/vTl1McjXM2JA.asf
tjhinkh 01/10/2009
By rescuing Wall Street, the recovey period will be longer. History have shown that in 1970
Wall Street was bailed out and the 1970 went through terrible times. Japan bail out their
banks in 1990 and the are still talking that 1990 is a lost generation.
But Korea and Russia just let it fail and pubish those people that did wrong. They have
a recession for a year or two and they are now a thring nations.
If the US government bail the market, there will be a rally and Jim is planning to short it
in the future. One week, one month or one year later.
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