While Jim Rogers has never had a good opinion of Fed Chairman Ben Bernanake, he seems particularly upset with his latest actions. He thinks that he had no right to bail-out Bear Stearns (BSC) to the tune of $230 Billion of the US taxpayers money. He claims that if BSC had filed bankrupcy,the billions of dollars of bonuses paid out in January would have to be returned. So effectively Bernanke facilitated a bail-out so that his pals on Wall Street could continue to drive their Maseratis! Sounds a bit too conspiracy-theory to me, but in principle I agree with him. It’s not fair that the Wall Street guys take huge risks to make huge amounts of money, but when they mis-calculate, instead of being punished by the market (in terms of bankruptcy and financial ruin) the Fed just bails them out.
He also admits that he’s been buying agriculture for a while, since its the cheapest commodity and that he’s also out of the dollar. He also thinks that gold should be over $2,000, adjusting for inflation. The short term dollar rally isn’t fooling him, he’s using it to liquidate the rest of his dollars.