Legendary investor: ‘Big crash’ is coming ‘this year or next’
(National Sentinel) Market collapse: In an interview this week with Business Insider, legendary investor Jim Rogers made a sobering economic prediction: ‘The worst market crash in our lifetimes is coming.’
We know, you’ve heard all that economic doom-and-gloom stuff before – a lot – and now you’re hearing it again. But considering that in recent years we actually did have a major crash in the Great Recession of 2008-09, which reverberated for years afterward, and given that Rogers knows his stuff and of what he speaks, we thought we’d share some of his thoughts from that interview.
Importantly:
I learned very early in my investing careers: I better not invest in what I want. I better invest in what’s happening in the world. Otherwise, I’ll be broke. Dead broke.Well, what’s going to happen is it’s going to continue. Some stocks in America are turning into a bubble. The bubble’s gonna come. Then it’s gonna collapse and you should be very worried.- [On what will trigger the collapse]: Well, it’s interesting because these things always start where we’re not looking. In 2007, Iceland went broke. People said, ‘Iceland? Is that a country? They have a market?’ And then Ireland went broke. And then Bear Stearns went broke. And Lehman Brothers went broke. They spiral like that. Always happens where we’re not looking. I don’t know. It could be an American pension plan that goes broke and many of them are broke, as you know. It could be some country we’re not watching. It could be all sorts of things. It could be war. Unlikely to be war but it’s going to be something.
- [On how bad the crash will be]: It’s going to be the worst in your lifetime. It’s going to be the biggest in my lifetime and I’m older than you. No, it’s going to be serious stuff. We’ve had financial problems in America — let’s use America — every four to seven years, since the beginning of the republic. Well, it’s been over eight since the last one. This is the longest or second longest in recorded history, so it’s coming. And the next time it comes — you know, in 2008, we had a problem because of debt. Henry, the debt now — that debt is nothing compared to what’s happening now. In 2008, the Chinese had a lot of money saved for a rainy day. It started raining. They started spending the money. Now, even the Chinese have debt and the debt is much higher. The federal reserves, the central bank in America, the balance sheet is up over five times, since 2008. It’s going to be the worst in your lifetime, my lifetime too. Be worried.
- [Can it be stopped? Can we be saved?] They will try.
Rogers said he moved his family to Asia because he sees Western governments failing, and while he did not specifically mention the United States, clearly, because of our current political environment – in which the Alt-Left Democratic Party is just pining for any opportunity to seize power from President Donald J. Trump and the Republicans – there is every likelihood ours will be one of them.
“You’re going to see countries fail, this time around. Iceland failed last time. Other countries fail. You’re going to see more of that. You’re going to see parties disappear. You’re going to see institutions that have been around for a long time — Lehman Brothers had been around over 150 years. Gone. Not even a memory for most people. You’re going to see a lot more of that next around, whether it’s museums or hospitals or universities or financial firms,” Rogers noted.
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