Jim Rogers says Greek Bailout may be Prelude to a Collapse of the Euro Zone | Forex Factory

Jim Rogers says Greek Bailout may be Prelude to a Collapse of the Euro Zone | Forex Factory

Jim Rogers says Greek Bailout may be Prelude to a Collapse of the Euro Zone

From thomsonreuters.com

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Nov 5, 2011 7:21am

I dont think Greece alone can bankrupt the Euro but if Ireland, Italy, Portugal go then it is possible. Somehow Europe has to find a way to stop this but so far I dont see it happening at this point. I think Europe along with the USA needs to do 2 things:
1. balance the books and this needs to be done over a period of years not too fast or you crush economies.
2. Instead of taking haircuts just cut the interest rate to 0 on the bonds (debt) and put all payments toward the principal. Everyone gets their money back, you dont have to over inflate to recover, and losses dont spread to other countries and banking systems. You then pay down the debt evenly and at some point when the debt is not crushing anymore you can increase the interest rate so bond holders get something for their money.

Nov 5, 2011 5:23pm

Quoting Scrat

Disliked

nanningbob, this is only in theory. in reality, there is absolutely no political will to get rid of any debt. it's just useless talk. while the debt grows bigger, of course.
i said it before, do you really think u.s. debt will ever be paid? i don't. i think it's obvious, you can't possibly pay off until you stop spending over your limits AND are able to put something aside. and then, it's huge, boy oh boy!!!
i mean, NO. it's not gonna happen. ever.
now... what are the alternatives?

Ignored

Alternatives .................. farmers with pitchforks worked last time.

Nov 5, 2011 9:06am

nanningbob, this is only in theory. in reality, there is absolutely no political will to get rid of any debt. it's just useless talk. while the debt grows bigger, of course.
i said it before, do you really think u.s. debt will ever be paid? i don't. i think it's obvious, you can't possibly pay off until you stop spending over your limits AND are able to put something aside. and then, it's huge, boy oh boy!!!
i mean, NO. it's not gonna happen. ever.
now... what are the alternatives?

Nov 5, 2011 12:05pm

Quoting fierceman

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This "so called expert" has made billions from investing. He is not just some chump Wall St. analyst.

Ignored

He made billions with billions. He also made substantial losses. He has just been propped up by the media, thats all. Get your brain out of your arse and you might be able to see.

Nov 5, 2011 1:15pm

Quoting fierceman

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No need for insults mate. From what I've read, he started out with something like $500. And yes I'm sure he has made substantial losses, that's part of the game. If you're expecting to never have any losses, you're in for a rough ride.

Ignored

No insult intended. He and Soros had more than 500$ to kick things off. 500$ sounds just nicer to make the story more marketable. Anyway, i predict right here and now that the USD has politically no chance of rallying before the Euro made a new high, so Mr. Rodgers still will have to wait a little. I havent read this yet in any of the mainstream media sources. In case i am right i wonder if you could call them TV stations and tell em that you met a new "Guru". That i dont have any loosing trades is what you said.

Nov 5, 2011 2:30pm

Quoting fierceman

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His life didn't begin when he met Soros. I agree that the EUR may still have a leg up, I just don't see how that has anything to do with your attack on Jim Rogers. The man is a legend in more ways than one, so for some random dude on FF to insult him without much of a basis for doing so, seems like a strange way to go.

Ignored

For you...and thats why i said get your brain outa your arse. End of discussion.

Nov 5, 2011 9:29pm

Quoting Pbh

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Jim Rogers is just repeating the point over and over and over...

Is there a solution??

Yes it is... allow Greece to go bankrupt, we all know that creating more debt to pay debt is just going to make things worse.

Done.

Ignored

Easier said than done.

If Greece goes, then it will severely shock the global financial markets. Already two major financial institutions (one in the US and the other in Europe) have gone under just at the THOUGHT of a Greek default. A bankruptcy will severely shock the global financial system and we will see a quite a few more institutions go under. But probably this will be survivable. Greece is a small country with a population less that many of the great cities of the world.

If you then add Italy or Spain to the picture then the global financial will collapse. This is the contagion scenario, and it is all but certain. Now in my opinion, a collapse of the global financial system is not the end of the world... but it probably means a bad decade or so.

However, if you kick the can, then there is a chance that this wont happen. It may be small, but it is better than no chance at all. What is more, this slow train wreck will give people and institutions more time to adjust. And time to adjust in all things is important for people, society and economies.

Metaphorically, this is similar to an old grandmother who has cancer. You could operate today with the certainty it would kill the her. Or you could try less intrusive medicines in the hope that it will give her family time to adjust. And who knows... miracles happen every so often. She might live to be 100.

So I say...kick the can... and then keep kicking it. And while you are kicking the can, use the time wisely to prepare yourselves. No need to kill ourselves early just

Nov 5, 2011 11:39am

Quoting SirMcPip

Disliked

I would not look up to these so called experts so much. His answers in this interview show that he has not too much political insight.

Ignored

This "so called expert" has made billions from investing. He is not just some chump Wall St. analyst.

Quoting Guest

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Not sure what's with all this respect for a flip-flipper like Jim. Just months ago he was preaching the collapse of America... he was long euro... now realized he might have been on the wrong side changes hid tune... as usual... trying to move markets with doom and gloom.

Ignored

He is still calling for the collapse of USD - he just thinks EUR is first in line. He has been long agricultural (and other) commodities for a loooong time, and he has been long USD for a few months now, expecting the Euro crisis to drive up demand for US treasuries. I don't see much flip-flopping there, and in any case, he says if he's wrong he'll take a loss, no big deal.

Nov 5, 2011 12:10pm

Quoting SirMcPip

Disliked

He made billions with billions. He also made substantial losses. He has just been propped up by the media, thats all. Get your brain out of your arse and you might be able to see.

Ignored

No need for insults mate.

From what I've read, he started out with something like $500.

And yes I'm sure he has made substantial losses, that's part of the game. If you're expecting to never have any losses, you're in for a rough ride.

Nov 5, 2011 2:19pm

Quoting SirMcPip

Disliked

No insult intended. He and Soros had more than 500$ to kick things off. 500$ sounds just nicer to make the story more marketable. Anyway, i predict right here and now that the USD has politically no chance of rallying before the Euro made a new high, so Mr. Rodgers still will have to wait a little. I havent read this yet in any of the mainstream media sources. In case i am right i wonder if you could call them TV stations and tell em that you met a new "Guru". That i dont have any loosing trades is what you said.

Ignored

His life didn't begin when he met Soros. I agree that the EUR may still have a leg up, I just don't see how that has anything to do with your attack on Jim Rogers. The man is a legend in more ways than one, so for some random dude on FF to insult him without much of a basis for doing so, seems like a strange way to go.

Nov 5, 2011 4:12pm

Quoting SirMcPip

Disliked

Get your brain out of your arse and you might be able to see.

Ignored

Quoting SirMcPip

Disliked

No insult intended.

Ignored

Quoting SirMcPip

Disliked

and thats why i said get your brain outa your arse

Ignored

How about we talk again when you're done with your PMS. In the meantime you might wanna think about what exactly you are trying to say.

Nov 6, 2011 1:30pm

Quoting battlebutt

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LOL, what a demagogic spin this is -- I started out with $0.

Ignored

Sorry for not being clear enough. What I meant was "$500 was his seed money which started his rise as an investor". I am not claiming that this is absolute truth but any way you wanna slice it, he was certainly not a billionaire when he "started out" and that was my point, because one gentleman claimed that earlier on.

Quoting rchrdfrncs

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I think FF likes to post Jim Rodgers just to see what kind of emotions he can stir up. It's a good reminder to remember that traders, even successful ones, are not infallible. Thank God! I know plenty of successful traders, possibly better traders, who prefer not to be in the public eye like Jim Rodgers. Many don't share his opinions.

Good traders would prefer to trade the markets rather than predict their downfall. Rather, they chose to to use the language of traders then that of a self proclaimed prophet. The later would define Jim Rodgers...

Ignored

Jim Rogers doesn't claim to be a trader at all. In fact he has said many time that he's not smart enough to be a trader (although in a condescending tone). What I think he's saying is that it is difficult, if not impossible, to guess the timing and exact levels of moves in financial markets, without inside knowledge. That's my take on it anyway.

Nov 6, 2011 6:02pm

The key is.....how can he not have inside info? He's been connected for years. I think he works with the arrogant bastards. He's their mouth piece. I think they sit around and laugh at us....we told them so and they still didn't get it.

I'll say it again 155 trillion in derivatives waiting to explode the FDIC. That's not doom and gloom. That reality. All tied to the european mess. But....he knows something about the euro he's not saying. You always have to read between the lines with Rogers. He'll say something like....I'm buying farmland. You got to read into it.

He bought gold at 700.00 or so....silver at 4.00 to 9.00. That's when he started saying I'm buying gold and silver. Did you listen? I would guess from what's being said....no.

I'm disappointed he lost his bowtie. It's all for effect....so they can laugh at us some more. They make him look stupid on purpose.

Nov 5, 2011 4:42am

Even though Rogers is one of the best “Metal Case Scenario traders”
I can see he is a bit stressed and the reason is because he is long in USD
as I remember on his last interview 2 months ago he admit that he is buying the buck by closing his short positions he was wrong then he is wrong now
What is going on;
I think he must do it in a Goldman Sucks way let the Quants make the trades

Nov 5, 2011 7:58pm

Jim Rogers is just repeating the point over and over and over...

Is there a solution??

Yes it is... allow Greece to go bankrupt, we all know that creating more debt to pay debt is just going to make things worse.

Done.

Nov 5, 2011 4:25am

I am a great fan of Jim Rogers and he really does talk a lot of sense. As always he is advocating Greek bankruptcy. This has got to be the only sensible way forward. My concern lies in the fact the Eurozone countries do not have any mechanism by wghich a member state may go bankrupt. This is something that they continually fail to address as they continue t kick the can down the street.

Nov 6, 2011 10:41am

I think FF likes to post Jim Rodgers just to see what kind of emotions he can stir up. It's a good reminder to remember that traders, even successful ones, are not infallible. Thank God! I know plenty of successful traders, possibly better traders, who prefer not to be in the public eye like Jim Rodgers. Many don't share his opinions.

Good traders would prefer to trade the markets rather than predict their downfall. Rather, they chose to to use the language of traders then that of a self proclaimed prophet. The later would define Jim Rodgers and why he can stir up so much contempt. This is why he has mine.

Why is Greece so important, and why can Greece's default have such a huge impact? The answer is fear. The banking system will collapse due to a run on the banks as a consequencs of the actual default. Many things remain to be seen, and many of us minions do not have access to what goes on behind closed doors. We can only trade what we see happening in the markets now with some sense of the future.

Nov 5, 2011 1:09am

hahahaha... your grand daddy... you wish.

Nov 5, 2011 5:26am

I would not look up to these so called experts so much. His answers in this interview show that he has not too much political insight.

Nov 5, 2011 4:26am

Jim Rogers is right but... dont listen to his pessimistic visions coz this is his job. Thats why people inviting him to seminars, tv shows ect. No one knows what gonna happens in 2-5 years.

Look at Trader VIC book (Victor Sperandeo) from early 90'. US dept was about 600bil $ and he wrote that this is tremendous hi lvl and there is no space for more... now after 20yr we have 13000bil so...

Euro zone is to important for Germany and France. Without Euro german export will be gone.

Nov 6, 2011 3:15am

Come on, will this ever stop? I've been listening/reading about the Euro Zone collapsing since it's inception.

Unfortunately, catastrophes, disasters, doom and gloom theories have a certain sex appeal in the media markets. You don't even have to go further than FF to realize that -- take a look at the most commented stories here.

Damn, although utterly annoyed by listening to parrots shouting "the Euro is doomed, the Euro is doomed..." for almost two decades by now, I still couldn't resist to take a peek. Shame on me

Nov 6, 2011 3:25am

Quoting fierceman

Disliked

... From what I've read, he started out with something like $500...

Ignored

LOL, what a demagogic spin this is -- I started out with $0.

Quoting SirMcPip

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... He made billions with billions. He also made substantial losses. He has just been propped up by the media, thats all...

Ignored

True, but as far as I know he didn't inherit the first billions to make new billions. So kudos to him for acquiring the first billions.

Nov 5, 2011 3:44am

The solution is, survival for everybody at least (means at least food, shelter, education for everybody)
freedom and mutual respect for everyone.

No government (nobody) has the right to make the individual (born or unborn), debtor without his or her consent; even if the government was elected from 99.999% of the people of the whole earth.

Nov 6, 2011 2:13am — Edited

He said he was buying euros if there was a crash a few weeks ago, now the news scared him and he changed his mind. He is only human you know...

The euro can survive even if they kick some countries out and then reunite when conditions are better... The politicians will have to work hard though and that is something they don't like hence they say IMPOSSIBLE

Nov 5, 2011 2:54am

Not the entire world, by any means.
Prelude to a LENGHTY collapse of EU, yes, but it has started 2 years ago.

Trader#EADF

Nov 5, 2011 5:09am

Not sure what's with all this respect for a flip-flipper like Jim. Just months ago he was preaching the collapse of America... he was long euro... now realized he might have been on the wrong side changes hid tune... as usual... trying to move markets with doom and gloom.

Trader#24D4

Nov 4, 2011 11:30pm

Greek, this trojan horse for Eu or maybe entire world...who knows. I love this man, looks like bunicul meu

)

Trader#CACE

Nov 5, 2011 4:19am

But U.S. is in the same boat.
Not much time left.
Work for Chinese wages?

Trader#D91D

Nov 5, 2011 5:26am

Italian Finance Minister: "on Monday there will be a disaster on the markets."

Trader#4936

Nov 5, 2011 5:57am

This will go down in history as the slowest train crash in history.

Trader#11A8

Nov 6, 2011 1:20am

common kids, we all know that Jim is heavy invested in commodities and gold.
With those assets he will never be an optimist right? ;-)

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Nov 4, 2011 10:51pm
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