Posted on 06/09/2017 6:22:34 AM PDT by SkyPilot
Legendary investor Jim Rogers sat down with Business Insider CEO Henry Blodget on this week's episode of The Bottom Line. Rogers predicts a market crash in the next few years. One that he says will rival anything he has seen in his lifetime. Following is a transcript of the video.
Blodget: One of the things I’ve always admired about you as an investor is that you don’t talk about what should be. You figure out what is going to be and then, you do that. So what is going to be with respect to the stock market? What’s going to happen?
Rogers: I learned very early in my investing careers: I better not invest in what I want. I better invest in what’s happening in the world. Otherwise, I’ll be broke. Dead broke.Well, what’s going to happen is it’s going to continue. Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s gonna collapse and you should be very worried. But Henry, this is good for you. Because someone has to report it. So you have job security. You’re a lucky soul.
Blodget: Well, yeah, TV ratings do seem to go up during crashes but then they completely disappear when everyone is obliterated, so no one is hoping for that. So when is this going to happen?
Rogers: Later this year or next.
Blodget: Later this year or next?
Rogers: Yeah, yeah, yeah. Write it down.
Blodget: And what will trigger it?
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Blodget: And how big a crash could we be looking at?
Rogers: It’s going to be the worst in your lifetime.
(Excerpt) Read more at businessinsider.com ...
like clock work, the economy crashed...
or did it?...
I remember the report about the House congressional committee meeting and predicting riots in the streets about the upcoming crash several months down the road...of course the rats denied it...
they wanted the bammy to be elected...funny, just as McCain and our Sarah were surging that the economy took the blip..with Tarp, etc...
there is only fact in life of our economy and that is the rich will always take everything if they can..
WW2 cost us about $300 billion IIRC...
A colloquial name given to the Working Group on Financial Markets. The Plunge Protection Team was created to make financial and economic recommendations to various sectors of the economy in times of economic turbulence. The team consists of the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the SEC and the Chairman of the Commodity Futures Trading Commission.
I still have the junk silver I bought back the Hunt brothers charade...
Yeah, I'm not talking Venezuela, I don't think it'll be that bad here. Many people here in the USA will cope with what's coming. Such as a depression. I'll be okay, so will my family. We own our property free and clear, have no debts, and have investments spread around.
But other people are going to be squeezed with a depression. Stores and companies going under will put more people out of work. Those people will be hard pressed to make the rent or mortgage. Especially if they have no cash on hand. These are some of the people I'm talking about. If they're pushed out of housing, they better have some cash to fall back on. This is not a scare hyperbole, it is a fact. Our elders weathered the Great Depression, our generation has no idea what is coming but it will be similar.
Like you, I'm not envisioning Mad Max, but a steadily worsening situation that many people have not prepared themselves for. When it hits, there will be a correction in real estate prices and I'll be buying some rural real estate and rebalance my holdings. As for barter, I have plenty and have skills. As for my metals, not doing so well lately, but that's just a portion of holdings.
“look, back in early 2007 I remember that the economy was great up until the rats took both houses and ruined the economy..”
No. What happened is that the real estate bubble that had been driving the economy plateaued in 2007. It hung in space like the coyote in a roadrunner cartoon.
By summer 2008 buyers who had been betting on endless price gains began defaulting on their mortgages, imploding the CDO paper created from them. This nearly took down Bear Stearns, and did wreck heavily leveraged Lehman. That’s when the bubble blew. No Democrat treachery needed, they were just as clueless as the Republicans.
Recall that a big part of starting the mess was a legal or pseudo legal requirement to offer housing loans to unqualified applicants on the grounds that banks were turning down loan applications because they were racist.
Thanks. I see the “PPT” was created by a Reagan EO with defined members and tasks. That takes much of the mystery out of it.
The rest of the competition was destroyed after WWII. That is why we had a boom. It took them 30 years to rebuild
Googled the Hunt bros. escapade. They bumped the silver price from $11/oz in 1979 to $50/oz before it collapsed.
I remember footage of people’s family sterling being melted into ingots.
As noted, silver today is $17/oz & change.
Where’s the panic? Germany in 1923 this isn’t.
I hate shopping for clothes etc and rather pick thru Goodwill looking for an old muffin tin...
demographics is the reason why malls are failing....as you get older, you don't need very much...
if they knew, then what happened was planned or threatened...
Despite how many times that claim gets repeated around here it isn’t true. The CRA is what is being blamed, and even if for the sake of argument we posit that it was what the CRA required it would account for only a small portion of the subprime loans that were made.
The CRA only covered deposit takers like your corner commercial bank. They were small time players in the subprime world.
The largest number and the most risky subprime mortgages were written by investment banks and pure mortgage lenders not covered at all by the CRA. The investment banks and pure mortgage lenders were writing these loans because Wall Street was using them to create CDOs and a raft of derivatives that were making everyone involved rich. At least they were rich until the bubble that they helped create blew up in their faces and took down the real economy.
“if they knew, then what happened was planned or threatened...”
Hardly. The vast majority of people in finance refused to recognize that there was a bubble. The same goes for government. The rare exceptions would be Brooksley Born at the CFTC and Sheila Bair at the FDIC who warned that the OTC derivatives market was becoming very dangerous to the financial system.
Born was driven out of her job because Congress and the bankers believed a pile of nonsense about markets being self regulating. Well they are I guess if you consider a huge financial crash to be “self regulation”.
The crash blindsided the majority of financial firms and government agencies. You think that they were capable of planning it because you weren’t paying attention to what these clowns were saying as the bubble grew and finally blew. They were in denial and then shock. There were a few people here at FR with more sense than the pros, who spotted the bubble and had been warning what was coming.
Yeah it was created in reaction to the “Black Monday” event back in October 1987. The Dow fell 500 points in one day and scared the hell out of everybody, they thought it was 1929 all over again.
The Dow had been at 2500 and 500 points was a 20% fall. It rocked markets all around the world. Program trading which was new got blamed, but no one was sure. The PPT was attempt to prevent another crash.
I agree with you, and the doom predictors seem to cry wolf. However, I believe that the doomists (is that even a word?) are close to the truth, but the powers that be keep the machine running. Even former PPTs members admit as much.
We have to keep in mind that the Market is the world's biggest casino, and very volitile. Like yesterday:
Tech stocks tumble, taking down Nasdaq as big names sink
I remember that.
Born was driven out of her job because Congress and the bankers believed a pile of nonsense about markets being self regulating. Well they are I guess if you consider a huge financial crash to be “self regulation”.
That is an excellent point.
The problem is that CRA lead to a relaxation of standards that were universally applied to the mortgage market.
So your advice to avoid the downturn is to never invest in stocks?
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That’s not even close to what I wrote, nor am I giving advise to anyone. And where did the word “never” come from? You are reading way too much into things my friend.
What I clearly said is that, in my opinion, low beta (i.e., less volatile) blue chip stocks with sustainable earnings will ride out the inevitable storm with relatively minor losses, because they they are battleships that have endured many downturns in the past. Everyone feels some pain in a significant downturn. I want to be in a strong building when a hurricane hits.
I have one low beta blue chip that lost 50% in 2008 crash but has recovered nicely. OTOH I have a high beta stock that barely moved in 2008 and is up over 70x since 1997.
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