Jim Rogers: Let the Banks Go Bankrupt
In an interview with Bloomberg on February 11, Jim Rogers says the U.S. should do what it was telling Japan to do when the Japanese bubble burst twenty years ago. Rogers argues that Japan did not listen to the U.S. advice, instead propping up "zombie" banks and ushering in the so-called "lost decade."
Rogers believes the U.S. is now doing the opposite of what it had advised Japan to do. The implication is that the U.S. may end up along the same path as Japan, i.e., no recovery for a decade or longer. Needless to say, Rogers is not very complimentary toward Treasury Secretary Tim Geithner.