Friday, July 18, 2008

Jim Rogers : Let Fannie and Freddie go Bankrupt

This first video is the one I was looking for earlier in the week -- after watching it on Bloomberg:

Jim Rogers in interview with Bloomberg said that government has no authority to buy Fannie and Freddie stocks and should have allowed them to go under. He said also that Paulson and Bernanke hear only Wall Street but don't care about inflation and the rest of Americans.

Jim Rogers : Let Fannie and Freddie go Bankrupt

Jim Rogers: Fannie and Freddie ... let the patient pass away


Patrick said...

JP Morgan’s Dimon: Prime Mortgages Look “Terrible”

“Our expectation is for the economic environment to continue to be weak – and to likely get weaker – and for the capital markets to remain under stress,” he said in a press statement. “We remain conscious that since substantial risks still remain on our balance sheet, these factors will likely affect our business for the remainder of the year or longer.”

Parsing mortgages
Part of that weak economic outlook can clearly be attributed to mortgages. In a surprisingly short conference call with analysts, Dimon suggested that losses in JP Morgan’s prime mortgage book could triple in the foreseeable future as the credit mess moves out of subprime and into Alt-A and jumbo loans.

“Prime looks terrible,” he told analysts on the call. “And we’re sorry, and there’s nothing else we can say.”

Justin_n_IL said...

Jim is a riot. I was rolling when he was talking about Paulson being on the phone telling people to buy.

DRE said...

If Fannie and Freddie we're allowed to fail, it would certainly trigger a world-wide economic collapse.

The US has no other course than do what they are pursuing.

Bernanke has to keep Interest Rates low or he would stifle the economy faster than it's presently declining. This action devalues the Dollar.

If he lowered Interest Rates more, then, it would show the World that he's on a course to "inflate our way out of the debt we face". The US would lose faith in our Dollar even more than they have already done so.

The "tough talk" about being for a strong dollar is the best thing he could do.

He did it quick enough to not trigger excessive alarm, yet, not slowly enough to stifle what breath the US economy has left.

I think those that see things with enough educated guidance see that eventually, the US will encounter the coming "Very Hard times coming".

I would suggest that this is the time to get Your Financial House in order based on your own situations.

For each person it is a different course and their's no concrete guidance at this point.

For me, it's paying off my 3rd rental property. I have no other debt and it's 5.75% guaranteed gain on my money to do so. I have no other debt. The first 2 houses are paid off and are presently rented (as well as the 3rd).

I have a guaranteed job (dentist in the US Air Force) so am insulated more than some folks (probably most).

What better could I do with my money? Gold?, Stocks?, Overseas Investments?, Real Estate, Money in the Bank?, Cash under my matress? - Ok, you get my drift. Paying off a mortgage as aggressively as possible is best for me.

My biggest recommendation for folks is to get their economic house in order, Whatever Course that means. Each has to figure that out on their own.

Read as much as you can. Learn as much as you can about the present economic situation.

"Get her done". Soon too. I think the US will enter a Big Downturn by the Fall of 2010, maybe sooner. Gosh, I hope not. I'm not "ready".


Anonymous said...

The CNBC talking heads are generally ignorant regarding most issues financial. In this particular video they (especially 'Bertha') came across as being so stupid I felt embarrassed for them!