Jim Rogers, chairman of Rogers Holdings, talks with Bloomberg's Bernard Lo about the global recession, U.S. government bailouts, stocks, and commodities.
Click to play in a new windowI know we're going to have a long recession. I know we are going to have the worst time since the 30s. They may turn it in to the 1930s again - there's a very good chance of that. We're going to have civil unrest in the U.S. We're going to have civil unrest in other countries. We're already having civil unrest in many places. This is going to be a mess - be prepared. I hope I'm wrong, but be prepared. I would have let them all go bankrupt. The idea that they're spending over a billion dollars on bonuses at AIG is total insanity. They should have let them go bankrupt and they wouldn't have to pay anybody anything. These are bankrupt companies - you don't throw money into a bankrupt company. You give the money to confident people who can start over from a sound and solid base. You don't try to prop up dead companies. Listen, corn cannot go to zero. Natural gas cannot go to zero. Stocks can go to zero. Stocks can go down a lot. But commodities cannot go to zero. I own some gold. I do think that if it goes down I'll buy some more. Remember the IMF is trying to sell its gold. The IMF is one of the largest holders of gold in the world and if they sell their gold, it could conceivabley knock gold down a lot. But, if they do, you better buy all the gold you can because then that will be the bottom of the gold market and we'll get rid of the IMF too because they won't have any money left which is good for the world.But I own gold. I think I'll make more money in other things.
A few highlights:
On the recession/depression:
On what he would have done about failing banks:
On stocks versus commodities:
On gold:
At about the 13:20 mark he pulls a few gold coins out of his pocket.
