Last Updated :
17 September 2008 at 15:20 IST
Incompetent people forced Lehman collapse:Rogers
Commodity Online
SINGAPORE: Global markets are in turmoil thanks to the unprecedented crisis brought about by the collapse of global financial giant Lehman Brothers and the bail outs of Merrill Lynch and AIG.
But who is responsible for the fall of these banking giants? A set of incompetent people with Lehman Brothers, Merrill Lynch and AIG, says global investing legend Jim Rogers.
In an exclusive interview to
Commodity Online, Rogers—who is regarded as one of the top global commodities investors—said that "gigantic amounts of leverage caused by a few totally incompetent people within the firms" have led to the collapse of Lehman Brothers and problems plaguing Merrill Lynch and AIG.
Rogers said investment firms like Lehman used to invest heavily on commodities and as the funds have moved out of commodities, it has hit the markets hard.
”Commodities and everything else are being sold in forced liquidations because of the financial situations at many firms,” Rogers ssaid.
He predicted that the US economy in particular and the economies in several countries across the globe will continue to suffer thanks to the crisis. “After this panic and forced liquidations, the economies will continue to worsen, but the sound investments will recover first after the panic,” Rogers added.
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