I was watching an interview with Jim Rogers on Bloomberg and he is as blunt as it gets. When asked what he thought of Ben Bernanke and the Fed he promptly replied that "He (Bernanke) is an idiot and should resign". He obviously doesn't think very highly of someone who is lowering interest rates to provide a stimulus to the economy.
It's a case of "spare the rod and spoil the child". This whole mess is created by greed and putting your money in things you don't know. As Buffett puts it, "...for lenders who loan money out and cannot get it back, it's their own problem." Why should the Fed help them out when they are the ones who got themselves into such a mess. On my part, I think the recession fears are overplayed. Aren't recessions a normal thing in the economic world? It's a cycle isn't it? I was thinking that in the afternoon when I got back and watching Jim Rogers only serves to affirm it. He said that recessions are a natural thing which is needed to clean out the excesses so that we can start afresh on a solid platform. He likens these "rescue plans" to band aids plastered over the problem to hold it up but will only serve to worsen the fall.
"History doesn't repeat itself, it rhymes". Things probably won't happen exactly the same way as before but it probably will in similar fashion. Years after this sub-prime debacle, somewhere down the line there will be another liquidity issue where there is too much and credit is easy. Coupled with greed, it will probably create another bubble or similar situation of some sort. It's ironic isn't it? Things are bad when there's too little money and disastrous when there's too much.
It's a case of "spare the rod and spoil the child". This whole mess is created by greed and putting your money in things you don't know. As Buffett puts it, "...for lenders who loan money out and cannot get it back, it's their own problem." Why should the Fed help them out when they are the ones who got themselves into such a mess. On my part, I think the recession fears are overplayed. Aren't recessions a normal thing in the economic world? It's a cycle isn't it? I was thinking that in the afternoon when I got back and watching Jim Rogers only serves to affirm it. He said that recessions are a natural thing which is needed to clean out the excesses so that we can start afresh on a solid platform. He likens these "rescue plans" to band aids plastered over the problem to hold it up but will only serve to worsen the fall.
"History doesn't repeat itself, it rhymes". Things probably won't happen exactly the same way as before but it probably will in similar fashion. Years after this sub-prime debacle, somewhere down the line there will be another liquidity issue where there is too much and credit is easy. Coupled with greed, it will probably create another bubble or similar situation of some sort. It's ironic isn't it? Things are bad when there's too little money and disastrous when there's too much.