Commodity Online SINGAPORE: Is the US government’s decision to bail out failed investment banks and Wall Street companies on the right path? Not many investors and analysts support the historic $700 billion bailout package that the US House has passed.
One of the strong critics of the bailout package is global commodities investing legend Jim Rogers. “Whom has this bailout helped? The US government is bailing out Wall Street, not the American people who are in debt,” Rogers told
Commodity Online.
According to him, the bailout package has been one of the most insane decisions of the American government in recent history. “It is simply absurd and unimaginable. The bailout is going to be very bad for the US government, economy, dollar and inflation,” Rogers said.
He said several investment banks in the US have collapsed because of total mismanagement by a few guys. “So what the US government is trying to do is to bailout and help few bad guys at the Wall Street and in those failed banks. Will it help the American people? I don’t think so,” Rogers said.
Rogers, author celebrated books like
Hot Commodities and
A Bull in China and founder of the Rogers International Commodity Index, said that the US national debt was $5 trillion; but within a week the government doubled the national debt to the $10 trillion mark.
Rogers said the current credit crisis and global financial turmoil are certainly affecting commodity prices. “Yes commodity prices have come down and cooled off. But the bull market in commodities will be on, as the market stabilizes,” he added.
