Saturday, December 27, 2008

Jim Rodgers

Jim Rogers says the government's $700 billion rescue package for the fiancial sector does not address how banks manage their balance sheets, and instead rewards weaker lenders with new capital.

What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent.

What's happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics (Reuters).

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