On Jim Rogers and False Statements

Jim Rogers most likely is a capable investment manager. He is extremely lucky to have gotten all the way to the top and to have stayed there for a long time if he is not without skills. Obviously, he has made a lot of right calls.

It doesn't necessarily follow that he is always right though. Insisting that he is always right is like saying, "well, Annie was correct when she said that it will rain today. Therefore, she can never make a mistake when predicting weather."

Many seem to be arguing on the same lines for Jim Rogers' questionable position on the current US crisis without thinking about the issues thoroughly and objectively.

Yes, he made some good points. Rescuing failed institutions comes with consequences - people who deserve to suffer might get away with their irresponsibile actions. His call to buy commodities will also probably be proven right down the road.

But his statement below is simplistic in my opinion:

What would I like to see happen? I'd like to see them let these people go
bankrupt, let the bankrupt go bankrupt, stop bailing them out. There are
plenty of banks in America that saw this coming, that kept their powder dry
and have been waiting for the opportunity to go in and take over the assets
of the incompetent. Likewise, many, many homeowners didn't go out and buy
five homes with no income. Many homeowners have been waiting for this, and
now all of a sudden the government is saying: "Well, too bad for you. We
don't care if you did it right or not, we're going to bail out the 100,000
or 200,000 who did it wrong." I mean, this is outrageous economics, and it's
terrible morality.

I do not understand why it is so hard to see that the half who do not deserve to suffer will get punished too if the other half is allowed to die. Faulty financial institutions, on their way to hell, will surely drag an unquantifiable many.

Counter-parties of these inferno-bound institutons will get hit hard. They will bleed cash as their creditors and other counter-parties start calling their positions. If these institutions even manage to survive, it will not be without massive layoffs. These side-swipe victims will add up to the unemployment count alongside those who have been cut from already defunct financial institutions.

And there's no question about it - the rise in unemployment will surely have an impact on other parts of the world economy.

This is the picture we're looking at if Jim Rogers had his way. He seems absolutely sure that this outcome, where the innocent is punished along with the guilty, will be better than the present actions of Pres. Obama, where he aims to save the innocent at the cost of letting the guilty off.

To me, on his stand on the current crisis, Jim Rogers is like a guy who, after being asked to compare the count of grass in his farm with the farm adjacent to his, says, "the count on my farm is surely higher - because I said so."