Jim Rogers on Banks & Commodities:
"Jim Rogers, chairman of Rogers Holdings, said the increase in the price of crude oil has "years to go” as known sources of petroleum are dwindling. "I know that unless someone discovers a lot of oil, it can go to $150, $200” a barrel, Rogers said in a Bloomberg Television interview. "The facts are the world is running out of known oil reserves.”
Rogers said he bought airline stocks around the world today, saying bankruptcies show the sector may be nearing a bottom. "Bankruptcies are signs of bottoms, not signs of tops,” he said.
He also said he was shorting Exchange Traded Funds for investment banks, and specifically Citigroup Inc. and the Federal National Mortgage Association, or Fannie Mae. "I am short all the investment banks,” Rogers said on the phone from his home in Singapore. "I know they’re all in trouble, most of them have phony accounting.”
Rogers Says the Crude Bull Market Has `Years to Go’
Todd Zeranski and Betty Liu
Bloomberg, June 5 2008
We have a rugby scrum! ProBanks, ProLehman: Dick Fuld (Lehman CEO), Charlie Gasparino (CNBC), Doug Kass (Seabreeze Partners), Thomas Brown (Bankstocks.com) Anti-Banks Anti-Lehman: Donald Kohn (FOMC), John Roque (Natixis), David Einhorn (Greenlight Capital), Jim Rogers, Yves Smith (Naked Capital), and little ole me. > Fear vs. Facts on Lehman click for video Note: We have…Read More
From today’s WSJ, we see this critique about the Bear Stearns Bailout from an insider: Federal Reserve Bank of Richmond Jeffrey Lacker’s, made in a
speech in London on Thursday. Lacker, along with former Fed Chairman Paul Volcker and others, have
raised concerns about the Fed’s rescue of the
The WSJ described it as a "striking insider’s critique."
"The danger is that the effect of recent credit extension on the
incentives of financial market participants might induce greater risk
taking, which in turn could give
rise to more frequent crises, in which case it might be difficult to
resist further expanding the scope of central bank lending."
-Federal Reserve Bank of Richmond Jeffrey Lacker
It is unusual for a sitting Federal Reserve policymaker to critique the lending programs of the central bank.
The moral hazard of the extraordinary steps the Fed has taken is "distort private markets, encourage risky behavior, and could
endanger the Fed’s independence."
Lacker Speech on Financial Stability
June 5, 2008 11:00 a.m.
Fed’s Lacker Raises Concerns About Deal to Rescue Bear
WSJ, June 5, 2008 11:17 a.m.
Text of the full speech after the jump
Category: Federal Reserve
I’m told that’s been running a couple of months, which shows you how often I’m at that part of the site.
Let’s pull a random, video to show — hey, how about this one? We showed you the ad for "Buy One House, Get One Free" on Tuesday; Later that day, TheStreet.com had an interview with my friend, Paul Kedrosky — who not only is a Real Estate guru (WTF?!) but loves the smell of Napalm in the morning !
Aside from that slight shift in title (from college professor and VC to
love guru, here’s the accompanying video:
California: Buy One House, Get One Free (June 03, 2008 | 09:00 AM) http://bigpicture.typepad.com/comments/2008/06/california-buy.html