Jim Rogers: They Should Have Let Citi Fail

Love, Love, LOVE this interview! Jim Rogers is right on the money. PLEASE have more of this intelligent conservation in the media. I'm STARVING for truth. You know, when we're sick we have to take our medicine so we can get better. Let's take our medicine and be healthy again, instead of waisting time complaining that we're sick only to discover that we've become more ill. Let's take the medicine of more accountability, more individual responsibility, less government, more savings and more industry and live again!

Many things that Jim Rogers said I believe are correct. That also goes for Peter Schiff and Ron Paul. If all three agree on something then it is probably darn close to being prohetic.

I don't understand this whole argument about too big to fail. The whole premise of investment banking is basically betting on events in a market and if they go wrong they fail it's or a broad scale more like gambling the moment you make wrong bets you fail as simple as that. Trying to bail out investment banks is insanity. Anyway for those who still are scared what would happen incase america fails well. Japan had nuclear bombs thrown at it on two of its major cities its economy was totally destroyed and they started over on a base that was left which must have been strong and see teh growth story that japan has witnessed over the last 50 years. Every country right from China in 1870's turkey russia south korea world over has gone through bad economic phases where they cleared out the excesses and started building a more sound economy.

Bernanke and others have made the key point that in the 1930's the government made the big mistake of letting too many banks fail. There is some element of truth to the idea that it is good to "purge the system" of incompetent people...except the incompetence is so widespread it would END the system...not cleanse it. Jim Rogers has admitted several times he is shorting the financials ETF; so he has money interest in big components like Citi failing. He has some interesting views on commodities...and makes money trading...but he does not have an objective view of systemic financial remedies...and sounds more like a republican crank when he talks about no bailouts...Previously he was saying the Fed needs to raise interest rates as we were entering the recession.

All this talk of who should or who should not get bailed out, is topical over the main problems in this country. There are forces at play regarding our financial mess which in my opinion is being orchestrated. Take the CFR and Bilderberg members elected to office out of Washington if one really wants to see a massive improvement for the United States. All the people that ran for President this year are members, except one person, that being Ron Paul. If the news media was a fair playing ground, you would already know what I just posted here. If your not informed, you can google the member titles above. May God have mercy on our Grandchildren.

The capitalist comments are 100 % correct. The only way out of this mess is let the markets do their thing and stay out of the way The governments idea of putting condoms on the system to control disease wont work but abstinence will

Alexis Glick shows her knowledgeable and top beautiful ,graceful .it's the better performing interview with Jim Rogers .

Alexis, Thanks for having someone who is not part of the Acela-ocracy. He is the first guy you have had on that is correct and makes sense. He is right but he does not go enough. What he fails to mention is that "unstable currencies lead to unstable societies." As a currency treader he knows that when you have huper inflation you soon get dictatorsips and/or civil disaster (think gas chambers in Germany, Palestinian uprising in Isreal after their hyper-inflation in the 70s, the Argentinian civil war in the ....(well pick your decade), and Zimbabwe now). Gietner and Company are leading us into the killing fields with their hyper-inflationary "expansion of the federal reserve balance sheet"(if that is what the Acela-ocracy is calling turning on the printing presses). I think you should also follow Jim Rogers suggestion (I know it is hard when you have lived your life "east of the Hudson,") that all the brightest minds did not go to Ivy League schools). Maybe your guests should reflect that. Maybe you should have someone on who can talk about the demographic theory of economics and how it predicted this Marianas Trench Depression as well as the downturn in the Japanese economy in 1990 and onward. Japan passed 12 stimulous packages and their market never recovered. Maybe you should show that buy and hold has been a losing proposition in Japan from 1985 onward and that even buying after their crash in 1992 would, today, have left your portfolio with a third of your money it had in 1992.

I totally agree that we should have let citi fail. It would be the best thing for everyone, if these large banks and car manufacturers to go bankrupt. A couple of years ago, Citi Mortgage held my home mortgage. I only had 50 some thousand left on the home. I called them and asked if I could borrow $10,000 out of my equity to pay some debt. They said "No, but we can give you a $20,000 revolving credit line with a variable rate." Of course the rate got high, so I called them back and asked if I could get a fixed rate on the $13,000 that I had spent. They said "No, but we can give you a $40,000 home equity loan with a fixed rate, and pay off what you have spent so far with it." Long story short, instead of a $50,000 mortgage, I now have a $103,000 mortgage which I will never be able to pay off before I retire. Thanks Citi Mortgage!

Great exchange.... I felt short changed. I wish it went on a just a littlle longer.... the conversations were getting more and more interesting... At a boiling point, too bad it was cut off... I think alexis felt the same way...It was leading to a great ending...

It does not hurt to bail out anybody, as there is nothing backing the dollar. Assuming the Gold is still at Fort Knox, value it at 10,000 an ounce and back the dollar. Second idea, forgive all debt, individuals, factories, banks, including the national debt etc, in other words no debt by any entity. Then on January 1st we can all start over again with the buying and credit.

Great Interview. Rogers is absolutely right. Maybe the guys from Washington and those central banks around the world can take a cue from him and other legendary economists and stop burning money bailing doomed companies

Excellent job Alexis. You and Jim were firing on all cylinders durng the interview. The roundtable discussion was impressive too.

If people would have listened to him 1 1/2 ago they would have not lost 40% of their retirement savings. The media will always push happy times. There are times when you just have to get out of the market and be happy that you are not losing money, forget the 7% yearly returns.

What good is it to hand money over to a company that didn't manage our money well in the first place? By doing this are we letting the same management team work with our money this time around? That doesn't make any sense. Those people need to be fired and replaced with the right people.

Alexis, your program is one of the best for business information. It is quite scary when one realizes that eight years ago we were considering paying down the 5 trillion national debt with a surplus budget, and now we seem to be in a hopeless situation and getting worse every day with no end in sight. Your guest confirmed what many of us have suspected was going on, first raiding the treasury of surplus, and now running us into debt that may well finish wrecking our country, all to keep their friends and crony`s fortunes intact and growing. Our children and grandchildren may not have much future to look forward to as a result.

This man - Jim Rogers - is 100 percent right. In a couple of years the Dow will be at 2.000 points and inflation at 30 percent per annum. Then people can thank Bernanke & Co. for their silly and irresponsible politics!

I MEANT "BUY" CARS!!

I HAVE AN IDEA!!! THE GOVERNMENT CAN GIVE EVERY TAXPAYER $150,000!! THE ECONOMY WOULD BOOM!! EVERYONE WOULD BY CARS,PAY OFF MORTGAGES AND START NEW BUSINESSES. THATS JUST TO SIMPLE THOUGH, ISN'T IT????

One of the guests (Mark) said the Fed didn't inflate before the 29 crash. That's untrue. They inflated like crazy to ease the over production create from WW1. This easy credit from manipulated interest rates caused the boom that lead to the bust. I'm surprised Mr. Rogers didn't correct him.

It was 850 billion after window dressings and they will continue to shell out the billions and trillions until we are so deeply in debt that the thought of ever repaying it will be laughable. At that time hyperinflation will be rampant as a result of printing all this new money with no backing that we will actually be begging for a one world economy. I think this has been the plan all along.

I respect Rogers but he's wrong. The experiment that is laissez-faire capitalism has failed this republican government and people before and cannot be allowed to do so again. What I DON'T respect is the mob psychology promoted by the blithering idiots who host and appear frequently on this purported business channel. A client of mine sent me Youtube links today to Peter Schiff's appearances on Fox. HE WAS FOX'S ONLY REGULAR GUEST TO GET THE MELTDOWN RIGHT...and the thanks he got was rudeness and ridicule from the likes of Fathead Cavuto. Fox's coverage of the financial crisis is a good indicator as to why CNBC and Bloomberg will maintain their dominance of business broadcasting.

I have to admit, after watching the videos, Jim Rogers makes it seem like gloom/doom time. While Mr. Rogers has made a lot more money than myself, I'm curious to know why FXI and PGJ are down so much if China is so great. This morning, China had the biggest rate cut ever. Mr Rogers also states that companies "will keep going to the well". That's an assumption that the US Gov will keep bailing them out. While I agree letting companies like GM go bankrupt and 'start over', I do think (and hope not) the Gov will not bail everyone out. So, Mr Rogers assumption seems to be inaccurate. We didn't bail out Lehman did we...

Any of you ever grow up on a farm? Do you know what it is to pump water from a well? In order to pump water from a well, you have to prime the pump. You must take some of your reserve water and fill the lines and pump with water to enable the pump to pump. So, now we have the pump primed and we are ready to go. When you start the pump, all you pump is the water you used as a prime until the pump picks up new water from the well. If this happens, all is back to normal. However, if the well is empty, your prime is consumed by the users and the pump must be primed again. Mr. Rogers is saying, “The well is dry!” The government has added so many users to the well that the well cannot supply enough water for all of the users. You can prime the pump until everyone is out of reserve water but it won’t make a difference. The problem is with the well and the number of users… not at the pump. A bailout is an attempt by the government to prime the pump of our economy. It is borrowing water from us to prime the pumps. They keep priming and priming because it is the only thing they know how to do. We will see a very temporary spike in water flow as they prime but when the prime has been used, flow will stop again. The only way to allow the well to replenish itself is by making the users stop leaks, stop the wasteful use of water, or stop using water period via bankruptcy or failure. Until we start looking at the well or drill new wells, we will continue to fail. The well of our economy is manufacturing. The pump of our economy is the banking and financial systems. The user is government and consumer.

Alexis, that interview, and the accompanying roundtable amounted the finest piece of market/economy based jounalism I have been privelaged to watch in years. I am so tired of much of what I see and hear on the business shows on every day. I hear the bulls and bears, both with a clear gambling addiction, talking of 'tradeable bottoms,' and recovery being 'just around the corner.' Lessons--that is what we need to hear--some people on Wall Street have some common sense! I heartly agree with Jim Rogers and the crystal clarity he brings to the mess we have been getting into for decades. It's high time some of the reckless policies of risk that have prevaded so long, should be exposed for what they really are, and where they REALLY lead. The longer we put off learning those hard, hard lessons, the more painful they will become when there is no choice left, and we have to take the medicine. The very idea that we should be rewarding foolishness and punishing wisdom reveals the base nature of the worst kind of hedonism that has previailed for much too long. If it weren't for your comments/blogs, and those of Elizabeth McDonald, I wouldn't watch Fox Business. Period. Thanks for the great job handling that piece--it isn't easy to sit beside Mr. Rogers and keep control of the situation! Brava!