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Peter I'm Bennett turned to my next guest -- it's already been a history making morning week months and it's only Tuesday.
The government -- helped Citigroup the Dow set a record for two day trading pres elect Obama unveiled his economic team and my next guest as well versed on all of it.
We -- happy to be joined by legendary investor Jim Rogers the chairman and CEO of Roger is.
Holdings and I am so excited talk to Jim about this -- he's probably ready to flip out about it GM -- you have not been thrilled with his Troubled Asset Relief Program you now.
Walk into the studio and just find out breaking news another 800 billion dollars in your reaction.
Well aren't you -- distressed about it I'm I'm very -- it's horrible economics it's horrible morality.
They have now spent over what nine hunt none trillion trillion US dollars -- -- money in the last six months.
We're gonna have to pay taxes for this our children that they -- this is outrageous is bad economics and it's bad morality.
People are talking yesterday that the seven point four trillion dollars spent on this and now of course they Lexus that just -- -- up -- another one get it through one point two trillion.
Yeah and he's here here's the thing.
What would make us believe.
That allowing the Federal Reserve bank's balance sheet to go from 950.
Billion to what some.
Project go before trillion by next year might be four -- -- tomorrow.
And believe that that is gonna help the credit markets you tell me you're the expert.
Alexis river Albert Einstein.
He said the definition of insanity.
Is to do the same thing over and over and over again expecting different result.
They've been doing the same thing for fifteen years in Washington expecting different results.
And it is leading us into disaster this is very very bad for America I'm for the worst first time in my life I'm really worried about the future of America.
Because those guys -- Chad for building up gigantic -- and bailing out their friends and I Bailey you and me they're putting us deeper in the hole they're bailing out their friends.
Troubled Asset Relief Program at the very start was created to purchase troubled assets now -- they -- Throw up their hands and said it couldn't be done but at least from me had clean ate it up twice by which to measure these assets.
-- we have had any greater success or or capital injections.
Of course not a nexus which is supposed to do in times like it.
The way the system supposed to work when things go bad the competent people take the assets from the incompetent people and start over.
From a stronger base what we're doing this time is we're taking the assets away from the competent people.
Giving them to the incompetent people and saying okay incompetent people now you can compete.
With the cover of people -- their assets this is weakening the whole system.
You no longer have any strong institutions this is never worked the Japanese tried it in the 1990s -- to eighteen years.
A disaster for the Japanese they're stock market is 80% below where it was eighteen years ago it.
-- -- -- OK so Jim what -- ballot if we did a Resolution Trust Corp.
type of scenario.
Where we took all of these assets and we've selected.
A handful of top notch advisors.
Apple your bad for my -- -- Bill Nelson who's been dead wrong for a hundred weeks in a row 100 weeks in -- -- if I came when your show.
And I was wrong a hundred weeks in a row which you have me back.
Paulson has been -- a hundred weeks in a row doctor Bernanke's been wrong.
Two 300 weeks in a row mr.
Geithner he's been wrong 750.
Weeks in a row who these top notch people you're talking about.
OK so why I was thinking that maybe you choose people who as you mention argenbright of people who have been running these assets but the fact of the matter is.
What's scary is need -- and is that we continue to give money hand over fist.
On a daily basis to people who we believe -- the smartest minds.
If they -- to smartest minds.
And haven't -- -- into this -- how do we know that the money we're -- today is not going to be gone six months now and I agony come back to pay back.
Alexis -- for -- banks out there and brokerage firms which didn't get in -- and homeowners and and consumers which didn't get involved and Elvis.
They said did what they were supposed to waiting for these guys to -- knowing they would fail and now.
That -- the morality of this is we're taking their money giving it to the people who were failing and it's bad at a bad economics to do it this way.
Pat what do you mean how do we know we know I don't know what they're doing they could I don't know what I -- cameramen filming -- -- assures you that -- go bankrupt you let him go bankrupt that's how you do it.
Banks of Palin for hundreds of years invested banks have been saving them hundreds of -- this is not you into the little poll that was the word that too big to -- -- -- you think we could have allowed photographed without of course we could lead they should have failed.
So what if some banks -- -- it's gonna be horrible for a year -- -- Lexus we had the worst credit bubble we've had -- -- it ever in the world history and that.
We had huge excesses somebody's got to pay for that you can't just say well.
We made a lot of mistakes and now nobody has to pay for -- -- do you see these doesn't nuts like you with both now look they're looking back in the rearview mirror and they're getting slaughtered daily for allowing Lehman Brothers to fail because.
Many suggest the best thing they did you think you think they don't say very best thing that could do -- we shouldn't let them all fail.
Okay so we'll let out a company like Citigroup or another financial institution to -- won't let that had done to the credit markets and how do we fix the problem would have had a.
-- in -- into the ninety's.
South Korea got in trouble and collapse for two years since then they've been the fastest one of the fastest growing economies in the world -- clean up the system you start over.
-- renewed strength and then you grow in you can go very rapidly.
What we're doing is look it's like if I came do you have leukemia -- -- -- we will -- put a band -- here and take 3 Aspen tomorrow morning.
-- what are you talking about that's not the solution I gotta get rid of my leukemia.
I gotta take some drastic measures they're not taking drastic measures are trying to save their friends trying to save their friends on Wall Street they're not trying to save the rest --
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