Photo: Business Insider
Investors woke up to a nice surprise today. European leaders have agreed to a new bank recapitalization program. Traders and investors around the world are applauding this by sending the global stock markets surging.But CNBC reports that commodities guru Jim Rogers is sceptical, to say the least.
“Just because now you have a way to get them (the banks) to borrow even more money, this is not solving the problem, this is making the problem worse…
…People need to stop spending money they don’t have. The solution to too much debt is not more debt. All this little agreement does is give them (banks) a chance to have even more debt for a while longer,”
Rogers would like to see governments allow banks to fail, even at the cost of “financial armageddon”. Continuing to bail out countries and banks only postpones the inevitable, he argues.