Post by unlawflcombatnt on Mar 16, 2007 13:37:00 GMT -6
Investment guru Jim Rogers has a very bearish prediction for the economy. He predicts massive stock and home price declines in the future. Below are excerpts from an article by Elif Kaban from Reuters, titled Top investor sees U.S. property crash, in which Rogers makes his predictions.
"Top investor sees U.S. property crash
Wed Mar 14, 2007 12:59PM EDT
By Elif Kaban
MOSCOW (Reuters) - Commodities investment guru Jim Rogers stepped into the U.S. subprime fray on Wednesday, predicting a real estate crash that would trigger defaults and spread contagion to emerging markets.
"You can't believe how bad it's going to get before it gets any better," the prominent U.S. fund manager told Reuters by telephone from New York....
"Real estate prices will go down 40-50 percent in bubble areas. There will be massive defaults. This time it'll be worse because we haven't had this kind of speculative buying in U.S. history," Rogers said....
"When you have a financial crisis, it reverberates in other financial markets, especially in those with speculative excess," he said.
"Right now, there is huge speculative excess in emerging markets around the world. There will be a lot of money coming out of emerging markets....
Even in China, the world's fastest expanding economy, Rogers said stocks were overvalued and could go down 30-40 percent...."
Rogers further states that the last time a bubble burst in Japan, stock prices declined 85%. This happened while Japan had a high savings rate a large surplus in balance of payments.
Rogers concludes by saying ""This is the end of the liquidity party...Some emerging markets will go down 80 percent, some will go down 50 percent. Some will most probably collapse.""
The full Reuters article can be found at:
www.reuters.com/articlePrint?articleId=USL1470530620070314
"Top investor sees U.S. property crash
Wed Mar 14, 2007 12:59PM EDT
By Elif Kaban
MOSCOW (Reuters) - Commodities investment guru Jim Rogers stepped into the U.S. subprime fray on Wednesday, predicting a real estate crash that would trigger defaults and spread contagion to emerging markets.
"You can't believe how bad it's going to get before it gets any better," the prominent U.S. fund manager told Reuters by telephone from New York....
"Real estate prices will go down 40-50 percent in bubble areas. There will be massive defaults. This time it'll be worse because we haven't had this kind of speculative buying in U.S. history," Rogers said....
"When you have a financial crisis, it reverberates in other financial markets, especially in those with speculative excess," he said.
"Right now, there is huge speculative excess in emerging markets around the world. There will be a lot of money coming out of emerging markets....
Even in China, the world's fastest expanding economy, Rogers said stocks were overvalued and could go down 30-40 percent...."
Rogers further states that the last time a bubble burst in Japan, stock prices declined 85%. This happened while Japan had a high savings rate a large surplus in balance of payments.
Rogers concludes by saying ""This is the end of the liquidity party...Some emerging markets will go down 80 percent, some will go down 50 percent. Some will most probably collapse.""
The full Reuters article can be found at:
www.reuters.com/articlePrint?articleId=USL1470530620070314