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TDRH (99.85)

Jim Rogers on the Bear Stearns bailout

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March 17, 2008 – Comments (21)

 

 I know I said I sick of hearing this guy badmouth the Fed and the US economy, but when he is right, he is right.

This section caught my attention.  

On why Bear Stearns was bailed out:

"You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses."

"This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Mazeratis."

   http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vpsp3dpnTUuA.asf

 

 

 

21 Comments – Post Your Own

#1) On March 17, 2008 at 3:31 PM, mickeyc21 (30.97) wrote:

Is Roger's ever wrong?

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#2) On March 17, 2008 at 3:38 PM, Tastylunch (29.89) wrote:

oh man that's a heck of a lot of ammo for that class action lawsuit that got filed about an hour ago.

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#3) On March 17, 2008 at 4:14 PM, dwot (99.49) wrote:

Good link...

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#4) On March 17, 2008 at 4:31 PM, AnomaLee (29.19) wrote:

Good link... In ten years you might need withdraw a few of these before you go grocery shopping...

 

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#5) On March 17, 2008 at 6:01 PM, abitare (99.31) wrote:

Crude, sorry I just reposted this video. I did not see your post....

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#6) On March 17, 2008 at 7:55 PM, zygnoda (27.20) wrote:

Wahoo ten thousand big... er I mean little ones ;)

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#7) On March 17, 2008 at 9:11 PM, floridabuilder2 (99.63) wrote:

nice catch

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#8) On March 18, 2008 at 8:41 AM, Gtrinvestor (99.88) wrote:

Man, I didn't even think about that angle.  I guess you really do have to be smart to work on wall street.

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#9) On March 18, 2008 at 9:11 AM, TDRH (99.85) wrote:

abitar, I did not mean to steal your thunder, I know you are part of the Jim Rogers for Fed Chief fan club.  Which, by the way seems pretty intelligent with hindsight. 

What a difference six weeks makes?   In my humble opinion the leadership of the company should be stripped of their assets and thrown in the real big house- not the country club white collar area.   Won't happen though.

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#10) On March 18, 2008 at 1:51 PM, Allstar13913 (99.80) wrote:

I think this post is idiotic.  The FED prevented Bear Stearns' bankruptcy because they didn't want wallstreet to see how deep the rabbit hole goes.  This was a move to protect the market.

Allstar13913

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#11) On March 18, 2008 at 2:16 PM, TDRH (99.85) wrote:

Allstar, everyone is entitled to their opinion, but don't you think the timing is a little strange?    6 weeks ago the checks cleared and everything was fine?  

Not a big fan of Jim's, he is pretty irritating/depressing to listen to,  but I copied this over because his opinions/instinct have made him a lot of money- and he pretty much calls them like he sees them.

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#12) On March 19, 2008 at 12:15 AM, DMBonedust (57.57) wrote:

I have yet to develope an opinion on this yet I do not doubt that Jim Rogers made a valid statement. I have to take a slightly objectionable stance when statements are made with out any citations presented.

My point is this: Where and how does Jim Rogers get this information?

Great subject for a blog, TDRH.

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#13) On March 19, 2008 at 12:15 AM, DMBonedust (57.57) wrote:

I have yet to develope an opinion on this yet I do not doubt that Jim Rogers made a valid statement. I have to take a slightly objectionable stance when statements are made with out any citations presented.

My point is this: Where and how does Jim Rogers get this information?

Great subject for a blog, TDRH.

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#14) On March 19, 2008 at 9:04 AM, TDRH (99.85) wrote:

DMBonedust,    Your question would be better answered by abitarecantina, he quotes Rogers quite a bit, I kind of stole his thunder. 

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#15) On March 20, 2008 at 4:51 AM, jester112358 (29.47) wrote:

Where does he likely get his information?  Likely, his old partner in the quantum fund, George Soros, who is very well connected throught the demoncratic party to sources in the government.  Just a guess.

 Great post by the way.   I have no doubt its true.

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#16) On March 20, 2008 at 11:37 AM, Bearpal (< 20) wrote:

Where's the outrage about all the options sold on Bear hitting $30, give or take a little? Wasn't $17B a fairly typical amount for Bear to have on hand in cash to operate with? Where's the outrage about market manipulation? That's nice it's being investigated - of course BS will be long gone, in all likelihood, by the time that investigation bears any fruit.

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#17) On March 20, 2008 at 12:01 PM, Bearpal (< 20) wrote:

Where's the outrage about all the options sold on Bear hitting $30, give or take a little? Wasn't $17B a fairly typical amount for Bear to have on hand in cash to operate with? Where's the outrage about market manipulation? That's nice it's being investigated - of course BS will be long gone, in all likelihood, by the time that investigation bears any fruit.

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#18) On March 20, 2008 at 2:37 PM, lquadland10 (< 20) wrote:

If you like this blog of mine read the ones after that and you can pas  it on.
BANKRUPT by 2057. Now with the CENTRAL BANK 'S more Debt is it now 2020 we will be BANKRUPT?

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#19) On March 21, 2008 at 1:56 AM, lquadland10 (< 20) wrote:

 THIS IS WHERE WE ARE    THIS IS WHAT IS HAPPENING AROUND THE WORLD SANCTION BY ALL GOVERNMENTS THAT INCLUDES ME and will I change? REAL CHANGE ?   /param>                                          AND ALL BUT ONE WAS KILLED                    THE UNITED STATES OF THE WORLD BANK?????? OR THE UNITED STATES OF AMERCIA!!!!!!!!    IN GOD( WHO HAS 76 NAMES ) WE TRUST. IS THIS THE END For US?  Will the World GOVERNMENTS  control or will  WE THE PEOPLE?  I will do as Mother Theresa,Gandi,Mendella did with peace and my vote.

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#20) On March 22, 2008 at 7:19 PM, abitare (99.31) wrote:

FYI - Jim Rogers and Soros founded the Quantum Fund. During the following 10 years the fund gained 4200% while the S&P advanced about 47% (963.99/800.36).[1] It was one of the first truly international funds. 

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#21) On March 24, 2008 at 1:41 AM, camistocks (< 20) wrote:

Did they pay the bonuses in cash or in stocks/options. If it's cash, whoa! If it's stocks, you know how much this bonus is worth today.

When I first heard this interview I was very disappointed by JR. He sounded like a populistic man who is frustrated that he can not make more money with his shorts. He is from the so called Austrian school, who believe in the gold standard, and as a rich man he can of course afford to go through a deep recession. Hey, he even left the country for Singapore...

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