Business

‘Making the Situation Worse’: Jim Rogers Explains Why the Spain Bailout Is the ‘Most Insane Thing’ He’s Heard

During an interview on CNBC’s “Fast Money Halftime Report,” Quantum Fund co-founder, free market advocate, author, and regular lecturer of finance at the Columbia University Graduate School of Business Jim Rogers said that the Spanish bailout was “the most insane thing” he had ever heard.

“It’s making the situation worse. The solution to too much debt is not more debt. This is the most insane thing I’ve ever heard,” Rogers said. “It’s going to make the collapse when it comes even worse. Be careful. You should be not careful, you should be worried.”

Spain’s sovereign credit rating was downgraded last week to just two notches above junk status. That made a bailout pretty much inevitable.

The troubled EU country announced on Saturday that it was eligible for a bailout of up to $125 billion. However, unlike literally every other bailed out EU country, Spain somehow managed to negotiate an austerity-free rescue package.

“So much for the Spain bailout. Why do you think the euphoria has been so short-lived today?” CNBC host Scott Wapner asked in reference to yesterday’s poor market performance.

“Scott, it’s nothing more than pushing the thing out into the future,” Rogers responded.

Watch the Rogers/Wapner interview [via CNBC]:

“What would you have done? What was the right answer?” Wapner asked.

“Let them go bankrupt. I would let all those people — Scott, the way the system is supposed to work, when you fail, you fail. Competent people come in, take over the assets, reorganize and start over,” Rogers replied.

“What we are doing in the West, we’re taking the assets from the competent people, giving them to the incompetent people and saying, ‘okay, now you compete with the competent people with their money.‘ It’s absurd economics. It’s absurd morality. It’s absurd economics,” he added.

Wapner continued in this line of questioning.

“That would be your same argument as it relates to Greece, then?” the CNBC host asked.

“Of course! We’re looking forward to elections in less than a week. Greece should be the first to go bankrupt. Let Greece go bankrupt and then the others would realize, ‘okay, guys, we got to shape up. If we don’t shape up, we’re finished,’” Rogers responded.

“That would be a good lesson for Europe, a good lesson for the West, and then the euro would be a very strong currency and we should buy all the euros we can,” he added.

Wapner had one last point he wanted to clarify.

“Despite all of that and as negative as that could be perceived as, you know, you sounding, you’re long commodities. You still believe in that story. You’re long various currencies as well. So you’re looking for opportunity in making money on the long side of things, too. I want to make that clear, you’re not shorting the whole world and running into the jungle,” Wapner said in what could easily be a reference to Rogers’ former partner, George Soros.

“No, no, no. I’m long a lot of stuff. But, Scott, we in the West have made some terrible mistakes in the past 30 or 40 years. We have run up staggering debts. You don’t just run up staggering debts and one day wake up and say, ‘oh, well, we made a mistake. Now everything is okay,’” Rogers replied.

“Somebody has to pay the piper. You know who it is? You, me and everybody watching this show,” he added.

Comments (57)

1 2
  • themongoose
    Posted on June 12, 2012 at 11:10am

    The question is not whether this debt based fiat money system will crash, but what the speed of impact will be.

    Rigging my chute and watching the engines flame out.
    Geronimo

    Report Post »  
    • marhee9
      Posted on June 12, 2012 at 11:21am

      And this is merely the beginning of the whole city, state, and country bailout fiasco we’ll all be wtaching unfold all around us. If the OWS crowd was all fired up about bailing out the banks, wonder how they’ll feel about bailing out entire countries. Things have gotten so crazy, and are only poised to get even crazier. Got an extra chute?
      http://www.youtube.com/watch?v=-OPf1dK-qlE

      Report Post »  
    • RVSisters
      Posted on June 12, 2012 at 3:21pm

      I’m with you, don’t save money – buy food!!!

      Report Post »  
  • Ted Zeppelin
    Posted on June 12, 2012 at 11:05am

    I‘m willing to help out the lazy and incompetent goverment employees of Spain right after they tell me what they’ve done for me. Oh, that would be nothing they’ve ever done for me, so they screwed themselves.

    By the way, what has any lazy and incompetent goverment employee of this country ever done for me? Nothing here either. Now I just wish I could screw them the way they’ve been screwing all of us.

    Report Post »  
  • johnpaulkuchtajr
    Posted on June 12, 2012 at 10:51am

    Jim Rogers is saying exactly what Glenn Beck said last night on his web show.

    Beck’s new book, COWARDS, is all about the tax and spend politicians who seem to be able to happily ignore the Sixteen Trillion Dollar Gorilla in the middle of the room.

    Obama doesn’t seem to understand that you “don’t solve a debt problem with more debt,” as Jim Rogers so succinctly put it. Or, if you believe the absolute worst about the man, he’s doing exactly what he intended to do from the outset.

    I guess the great unwashed will begin to understand what should have been done when they are scavenging gasoline and food or worse.

    Report Post »  
    • Detroit paperboy
      Posted on June 12, 2012 at 11:07am

      I told my banker the other day that I will be borrowing my way out of debt………..

      Report Post »  
  • TruthPolice60
    Posted on June 12, 2012 at 10:47am

    I might take the guy more seriously if he wasn’t dressed as the Good Humor Ice Cream Man.

    Anyone who wears a bow tie is suspicious to me. Did you notice that since Tucker Carlson moved to Fox News, he’s stopped wearing his precious bow tie? FOX knows that you look like a fool wearing one.

    Hey Rogers… give me a fudgesicle !

    Report Post »  
    • Mil-Dot
      Posted on June 12, 2012 at 1:48pm

      Ignore his advice at your own peril. Looks do not mean jack crap. Wake up you Obama loving idiot.

      Report Post »  
    • KidCharlemagne
      Posted on June 12, 2012 at 2:19pm

      Jim Rogers has gotten filthy rich trading commodities for the past 40 years, so he can wear whatever he wants to.

      Report Post »  
    • afellowpatriot
      Posted on June 12, 2012 at 6:59pm

      Hey Homes, why not wait until you’ve amassed as much fortune and respect in the private sector bewfore you start dissing the guy. Additionally, I saw where someone referred to you as an Obama loving idiot. If that’s not true, good for you. If it is, feel free to ignore this entire comment. All is well. The private sector is doing fine. Have a nice day.

      Report Post » afellowpatriot  
  • Allliars
    Posted on June 12, 2012 at 10:46am

    Rogers moved to Singapore to escape taxes and so his daughters can learn the wrong mandarin language, Singapore Chinese language is not the same as main land china. when both spoken they will sound different.

    Report Post »  
  • gingerbread
    Posted on June 12, 2012 at 10:38am

    What no politician want to admit is that they have screwed up. In order to keep their seats, whether here or in Europe, for 40 to 50 years, they convinced the population that they can live on borrowed money, if only the people will keep voting for them. Well, the well has gone dry, but the politicians don’t have the cojones to tell the people that they have been lied to. So, what to do? Easy, just borrow more money, even if there is no more money to borrow. What they are not telling the people is that they will not be getting the goodies they have been promised. It’s going to be reneging time.

    Report Post » gingerbread  
    • shogun459
      Posted on June 12, 2012 at 10:47am

      Look at anyone that EVER stood against the spending.

      WHAT DID EVERYONE CALL THEM?

      How many times have you heard concervatives called NAZIs, Racist and Bigots whenever they tried to rein in the spending?

      Guess What? Concervatives are still ignored and called worse names and still people won‘t listen to anyone that want’s to cut off their Freebies or Freebies to their Welfare Slaves.

      Report Post » shogun459  
  • minnfinn
    Posted on June 12, 2012 at 10:38am

    This whole domestic and EU fiscal mess reminds me of an act on the old “Ed Sullivan Show”. The Fed. and EU governments and central bankers are like the guy on that show who put China plates on top of 6-8 ft. poles spinning… he kept adding more and more spinning plate on more poles. He had to keep going to each and spin them, until he got to the point he couldn’t keep up. All came crashing down eventually. A trillion $, a trillion $ there, before you know it you’re talking about real money.

    Report Post » minnfinn  
  • kdshell1
    Posted on June 12, 2012 at 10:35am

    Politicians and governments interfering with free-market capitalism is what destroys economies, and ultimately nations. I believe that Obama’s (closed-door) message to European leaders was to keep the Euro propped up (with the Fed’s covert help of course) until after he gets reelected, and then he’ll be able to fully help them.

    Report Post »  
  • normbal
    Posted on June 12, 2012 at 10:31am

    Oh come on now. Everyone knows that Spain is the true engine of the Eurozone’s economy. What with 4 day workweeks, sometimes slaving over a civil service public sector job for as much as 6 hours a day, 240 days a year for 20 years before getting a 100% retirement package with full health and dental care sometimes they even take far less than the allowed 2 hours for lunch and siesta. Spaniards work HARD for their 40 years of retirement. Come on, Europe, cough up the cash the banks need to fund Spaniards’ retirement in the manner to which only the French are accustomed.

    Report Post » normbal  
    • Bracsim
      Posted on June 12, 2012 at 7:58pm

      I really hate CHE, I almost vomit when I saw his picture, do you really know who CHE is???? im sure you have no idea, I know that criminal ganster, he executed hundreds of political prisioner in cuba and he called for the destruccion of USA, thanks God he is dead and burning in hell.

      Report Post »  
  • RightPolitically
    Posted on June 12, 2012 at 10:25am

    Anyone with half a brain ought to bail out of the stock market while they still have time. Europe IS GOIN’ DOWN!

    Report Post » RightPolitically  
    • The_Jerk
      Posted on June 12, 2012 at 10:35am

      Europe is full of fools.

      Report Post »  
    • Mil-Dot
      Posted on June 12, 2012 at 1:51pm

      I cannot wait for the images of the politicians that caused this mess and covered it up to hang by their necks. That is exactly what they deserve.

      Report Post »  
  • Dougral Supports Israel
    Posted on June 12, 2012 at 10:25am

    Its obvious that the central banks are gradually losing control of the situation. Their attempts at stimulus aren’t working and the bailouts keep coming. Each time they ratchet up the debt the system becomes weaker. At some point nothing they do will have any good effect and the whole house of cards will come crashing down. Even George Soros has warned us of this.

    Report Post »  
  • showmerancher
    Posted on June 12, 2012 at 10:25am

    The entire economic system has been transformed such that its esthetic viability is significantly based upon belief in the economic system rather than in its limited (in relative terms) intrinsic value. When faith is lost in the system, it collapses for lack of a solid foundation.

    Full faith and credit = Smoke & Mirrors

    Report Post »  
  • saranda
    Posted on June 12, 2012 at 10:25am

    Why is TheBlaze paying attention to Jim Rogers who started the Quantumm fund with George Soros, and left the USA for Singapore to raise his family there in 2007. This man is everything GB hates and yet the Blaze quotes him regularly. Kinda hypocritical don’t you think?

    Report Post »  
    • aChameleon
      Posted on June 12, 2012 at 10:32am

      When you have eliminated the impossible, whatever remains, however improbable, must be the truth. Don’t forget, as Glenn says, the truth has no agenda. Think about it.

      Report Post » aChameleon  
    • shogun459
      Posted on June 12, 2012 at 10:41am

      When someone is yelling FIRE FIRE and he is right you don’t ignore him.

      By your own admission you think this man knows things that Soros knows, so that’s your reason for not listening?

      Some make money for themselves and everyone around them, others make money to control or destroy those around them.

      Some revel in the distruction they can cause with the money they make.

      You shouldn’t lump them all together or you server the destroyers among them.

      Report Post » shogun459  
  • Ruckus_Tom
    Posted on June 12, 2012 at 10:21am

    Spain’s got an ear ache compared to us.

    $16,000,000,000,000.00 That’s all we owe. Nothing to worry about.

    The feds will be coming for 401(k)s very soon.

    Report Post »  
  • TheSoundOf Truth
    Posted on June 12, 2012 at 10:16am

    THAT bow-tie is the most insane thing ever

    Report Post » TheSoundOf Truth  
    • shogun459
      Posted on June 12, 2012 at 10:32am

      You can’t even understand what the story is about can you? All you can see is his clothes. SO I guess the color of his skin is also more important than the warning he is trying to give you.

      Would you critic the cut of a fireman’s togs as he tries to save your life? Not accepting his help until he’s fashionably attired enough to be seen with you? I hope so, if you’re this shallow, cause you will die.

      Report Post » shogun459  
    • Mil-Dot
      Posted on June 12, 2012 at 1:55pm

      I know Shogun, I said the same thing. Idiots more concerned about trashing a bow tie than the content of his warning. Some people are destined to perish. Stupidity is stupidity. It is in a person’s DNA. They were born stupid and they will die stupid.

      Report Post »  
  • BlackCrow
    Posted on June 12, 2012 at 10:08am

    Fiat currency backed by debt. Who ever signed off on THAT insanity needed to be shot. Notice the “expert” who said the Germans were not lending unless the loans were collateralized in gold? Germans are demanding their loans be backed by gold deposits. Ben Bernanke said gold was not money. Well the Germans sure think gold is money and the Germans are in better shape than anyone else right now.

    Problem is there is not anywhere near enough gold or gold and silver or gold silver and any other tangible assets to cover the amount of debt that is backing the worlds currencies. It is all going to come apart and when that happens guns, ammunition tools and seed are going to be more valuable than gold

    Report Post » BlackCrow  
    • kaydeebeau
      Posted on June 12, 2012 at 10:19am

      I seem to recall something in an old Book about a piece of bread will buy a bag of gold…..

      Report Post » kaydeebeau  
  • huey6367
    Posted on June 12, 2012 at 9:53am

    I am sure economists in Spain saw this coming. I am sure they warned what was coming. And they were ignored. Until it hit the fan. Now the people are probably screaming “Why didn’t you say something?”. But they did. They just weren’t listened to. Just like what is happening in this country.

    Report Post »  
  • cloudsofwar
    Posted on June 12, 2012 at 9:51am

    all this turmoil in the EU and we have no leader here. Obama is the wrong man at the wrong time. i think Obama and the rest of the progressives are helping the coming collaspe. whats that word Obama throws around??? oh yes RESET. wipe out all debts and our wealth.

    Report Post »  
  • Abraham Young
    Posted on June 12, 2012 at 9:50am

    Well, DUH!

    The governments of the various nations are loaded with insane idiots. Or is it that the people of the various nations go along with the insanity, and perhaps seek to gain by it?

    Talk about corporate greed, this is governmental greed. Who do we turn to now, OCCUPY? HUH?

    Report Post »  
  • trotula
    Posted on June 12, 2012 at 9:39am

    I view this situation very much in the same way as when Hitler and the Japanese were invading and taking over….everyone turned the other way and let it go on far too long, because we refused to face it. We’re all “Nevil Chamberlain,” here. We cannot ignore this any longer. It’s time to face facts and take the nasty medicine.

    Report Post »  
  • face.chewer
    Posted on June 12, 2012 at 9:35am

    No, the most insane thing is that guys clothing. What is he a circus clown?

    Report Post »  
    • shogun459
      Posted on June 12, 2012 at 10:24am

      So instead of listening to the truth he is speaking you can only see the cut of his clothes.

      The man uses his intellect to become successfull and you’re using yours to drape cool peices of fabric on your body. Do you pick your friends on this basis? How many of them have disappointed you, owe you money or stabbed you in the back. Maybe you should rethink your priorities because if this man is right, and he is, none of us will be picking the cloths we wear or much of anything else.

      Report Post » shogun459  
    • Mil-Dot
      Posted on June 12, 2012 at 2:00pm

      Don’t worry Shogun. When the SHTF, it won’t be long before we see FaceChewer face down in a ditch.

      Report Post »  
  • Landon410
    Posted on June 12, 2012 at 9:33am

    there are a lot of stupid and or evil people in power, either they know what they are doing or they are ignorant useless idiots, these countries should default, they should be reorginized, they would come through the other end more conservative and in the future would be stronger, we are walking down the same path at europe, except we have a clear view of everything happening and aren’t turning and taking a different path

    Report Post »  
  • SamIamTwo
    Posted on June 12, 2012 at 9:28am

    I just simply want to meet the bloody Piper…who pushed this way…

    Report Post » SamIamTwo  
  • SREGN
    Posted on June 12, 2012 at 9:28am

    The irresponsible lunatics continue to wage war on the hard-working. Collapse is inevitable.

    Report Post »  
    • RJJinGadsden
      Posted on June 12, 2012 at 9:39am

      From what I heard about this yesterday, maybe a month or maybe two. Then, Spain will back in the same boat again. With this lack of responsibility, who will rush to their aid again?

      Report Post » RJJinGadsden  
  • Snowleopard {gallery of cat folks}
    Posted on June 12, 2012 at 9:23am

    We will, all too soon, pay the piper as his wages are coming due and in spades. How much of this Spain Bank bailout are we going to be on the hook for?

    Report Post » Snowleopard {gallery of cat folks}  
1 2

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love