Finance Trends Letter

  Jim Rogers has a new book out called Street Smarts and he's out talking about it, along with a few other favored subjects.  Here are a few highlights from his recent interview with Open Currency :  1 . Asked about Germany's repatriation of gold from American vaults, Rogers says they're right to do it and he's surprised they haven't done it sooner. Recently, the Federal Reserve refused the Germans an audit of their own gold, and according to Rogers "it's clear some of that gold has been lent out, or something, as it will take 7 or 8 years to move the gold."  2 . Nearly all governments are printing money, for the first time in recorded history. All major banks are "printing" and debasing their currencies, which brings us to Rogers' favorite safe haven - hard assets.  3 . We are destroying all the people who save and invest. People are getting wiped out because interest rates are zero and below the rate of inflation. Those who bo...

Get set for Friday links in our, "Features of the Week".  1. Jim Rogers : only a crisis can solve US debt problem - WSJ. 2. What Keith Richards' 'Life' as a Rolling Stone tells us about economics - Forbes. 3. An example of why Illinois is screwed up - Points and Figures. 4. The ultimate China fraud linkfest - Abnormal Returns.  5. Was it a "There it was" stock ? - Crosshairs Trader. 6. Jeff Bezos on innovation : Amazon is "willing to be misunderstood for long periods of time." - Geekwire.   7. Another story on hedge funds "grabbing land" in Africa - BBC. 8. Ron Paul: more people have died in the drug war than from drugs - Liberty Underground.  9. 2010 Oil story : drawing down the inventories - Gregor Macdonald.  10. Why comedians make great investors - Financial Philosopher. 11. Learn to overcome your obstacles - Kirk Report. That's all for this week. Enjoy your weekend and keep us on your RSS and...

Jim Rogers said that the US government's inflation data was "a sham" and that interest rates would be heading "much, much higher" in the next few years while speaking at the Reuters 2011 Outlook Summit. You'll find video of his chat w/ Chrystia Freeland at Investment Postcards or you can check the related video links in this Reuters article to see the full panel discussion. As usual, Jim pulls no punches while discussing Ben Bernanke's foibles as Fed Chairman and the difficulties facing the US and European economies as inflation and runaway deficits take their toll. He also points out some potential bright spots that could come about if the US government were to reduce its out of control spending and simplify (or do away with) the tax burdens on its citizens. Long term strength of the developing economies, commodities, and the rise of Asia are also highlighted.

Through the magic of Skype and the internet, Howard Lindzon interviews Jim Rogers on StockTwits TV and pitches him a barrage of questions sent in by StockTwits members. Everything is up for discussion here, from Rogers' opinion on stocks and commodities, to his early days working on Wall Street and running a hedge fund, as well as his more recent adventures. Also, plenty of focus on family life and raising his kids (who speak Mandarin and English) in Singapore. Enjoy the discussion, and Happy Thanksgiving!

During last week's MacroTwits discussion on StockTwits TV, Eric Jackson of Ironfire Capital posed a very worthwhile question to the group: who are the top global macro traders & investors of the day and what can we learn from them? For those who may not know, global macro is a term used to describe a largely "top-down" approach to speculating and investing across multiple asset classes and locales. Macro traders and hedge funds often take a big picture view of emerging trends and geopolitical events and express their positions accordingly by speculating in any number of markets, be they debt, futures, currencies, or international shares. The names of some now-legendary macro traders are probably familiar to most investors: George Soros, Jim Rogers , Stanley Druckenmiller , Louis Bacon, Paul Tudor Jones . But who are the rising stars and top practitioners of this investing style today? That's a question we're going to examine a bit further in the weeks ahead....

Jim Rogers is predicting a new recession in 2012 . So sayeth the Telegraph in a brief overview of his recent comments to CNBC: " Mr Rogers, the respected currency trader and hedge fund pioneer, cautioned that when the downturn takes hold "the world is going to be in worse shape because the world has shot all its bullets." Speaking in an interview with business television channel CNBC, the septuagenarian investor said that "since the beginning of time" there has been a recession every four-to-six years, and that's mean another one is due around 2012... " Telegraph reporter James Quinn goes on to add that noted academic & Case-Shiller index co-creator, Robert Shiller is also expecting a double-dip recession, and that it may come sooner. This follows David Rosenberg's recent call of an increased likelihood for a double-dip recession based on the latest drop in the ECRI WLI (economic leading indicators). Meanwhile, Sir Alan w...

The Financial Sense Newshour recently interviewed famed investor and author, Jim Rogers on lessons in life and investing . If you'd like to gain some key insights and life wisdom from one of the great self-made thinkers and investors of our time, listen to this very fine interview. Host Jim Puplava talks to Jim Rogers about the importance of doing your own thinking, living your own life, and doing the things you love, which, as Rogers points out, are key to living a very happy life. Enjoy the discussion, and if you get something out of it, be sure to pass this interview on to your friends or a young person starting out in life. They may appreciate it as much as you have! Related articles and posts: 1. Jim Rogers on life, travel, and investing - Finance Trends. 2. Jim Rogers: The Calculating Cowboy - Finance Trends.

Here are some of the items I've been checking out this week. Lots of news and views for your Friday reading and listening enjoyment. 1. Finance Overhaul bill would reshape Wall Street - Bloomberg. 2. "Gambling with Other People's Money" - Russ Roberts on the Crisis . 3. An interview with "Trader Vic" Sperandeo on the euro, sovereign bailouts, and gold. 4. Dennis Gartman says the fabric of European Monetary Union is being torn. 5. "Most people are wrong most of the time" - Jim Rogers talks with Sydney Morning Herald. 6. Crisis and Leviathan : Robert HIggs on our economy and the military-industrial complex. 7. Soundgarden covers a Black Sabbath classic , with (imagined) help from Chief Seattle. 8. Mises Circle in Manhattan : awesome guest list this weekend in NYC. 9. Barry Ritholtz' notes on the 2010 SALT conference . Finally, I just want to make a note about the design change we've recently implemented here at Finance Trends. I want to t...

When the news of Europe's unprecedented $1 trillion bailout package was announced last weekend, the storyline behind this "solution" to the sovereign debt crisis seemed (even at market-driven news outlets such as Bloomberg) rather skewed towards politicians' cries of speculators "attacking the currencies" of heavily indebted nations (where have we heard that before?). Now that we've had a few days to digest the European policymakers' move to "defend" the euro, I thought it might be interesting to hear from some of the people who saw this crisis developing and are now explaining, in plain English, what these bailout arrangements will mean for all of Europe and for the rest of the world. First, we'll point you to yesterday's post highlighting Der Spiegel's interview with Nouriel Roubini . If you missed it, be sure to read Roubini's views on sovereign debt issues and why Greece is just "the tip of the iceberg" for ...

Famed contrarian investors and thinkers, Jim Rogers and Marc Faber appeared on Bloomberg TV to discuss the May 6 market drop. Here's a little excerpt from Bloomberg's print coverage: "Investors should consider paring their holdings after a plunge in U.S. stocks yesterday, according to Jim Rogers and Marc Faber . Equities had a “normal correction” and were “overdue for a sell-off” after rallying from last year’s low, Rogers, Singapore-based chairman of Rogers Holdings, told Bloomberg Television today. “The market was overbought, ahead of itself and due for a correction,” Faber, publisher of the Gloom, Boom & Doom report, said in a separate interview yesterday. ..." You'll find the Bloomberg TV interviews with Faber and Rogers linked within the story (scroll down to the bottom of the article or see the "video" tab at the top). Always interesting to hear from our favorite straight shooters at times like these.

Twitter pal Dasan takes a look at Anthony Gallea's 1998 book, Contrarian Investing , in his recent post, "Contrarian Investing - a Classic Investing Book" . Here's an excerpt from the lead-in: " I believe serious investors are always trying to improve themselves. One of the ways to do this is through constant reading... ...I recently came across a book written in 1998 that a few smart hedge fund managers that I respect said had a great influence on them. I summarize its key points below, but don't let that stop you from reading the book yourself . "Contrarian Investing" By Anthony Gallea. Written 1998. In 1998, Anthony Gallea, a Portfolio Manager at Smith Barney, with help from William Patalon, a professional writer, wrote the classic “Contrarian Investing.” Jim Rogers wrote the forward to the book. Many successful investors have cited this book as a book that greatly influenced them. This volume, like Ben Graham’s “The Intelligent Investor...

    I mentioned Jim Rogers' most recent Bloomberg TV appearance in yesterday's post ; today I'd like to link to that full interview and share some wonderful insights from Jim on life, travels, and lessons for the younger generations. Of course, you'll also hear Jim's thoughts on the Dollar, the Euro, and the Greek debt crisis. Still, I wanted to highlight the more timeless wisdom imparted by Jim on his life and personal experiences. Hope you find the discussion worthwhile. You can find more from Jim Rogers in our related posts section, or by using the Google search bar in our sidebar. Enjoy the clips! Related articles and posts: 1. Jim Rogers: The Calculating Cowboy - Finance Trends. 2. Jim Rogers interview with Channel 4 - Finance Trends.

Jim Rogers offered up a great quote on the Greek debt crisis and the nature of politicians in his latest Bloomberg interview . When asked about the effects of credit default swaps (CDS) and speculators on Greece's debt problems, Rogers replied that speculators were simply reacting to what the Greeks have done to their own finances and that, "Politicians don't normally understand how the world works; that's why they're politicians" . As we've discussed before, it is always expedient for politicians to lie and point fingers at others to distract from problems and crises of their own making. Which brings me to this line of thought: what type of behavior and leadership can we expect from true statesmen, as opposed to their more opportunistic colleague, the politician? I turned to Google for a quick survey of opinion on this topic and found this quote at Wikipedia : "A politician thinks about the next elections — the statesman thinks about the next genera...

There is so much good material waiting in the cue on the subjects of Greece, sovereign debt, and currency speculation, but here's the piece I want to share with you today. It comes from Keith McCullough at Hedgeye and his post takes on the idea that, once again, "evil speculators" are somehow to blame for the fundamental economic problems of a country's own making. An excerpt from, "The Principled One" : " The other George (Papandreou) is the Prime Minister of Greece. Since the Chinese told him to go fly his levered-up bureaucratic kite, Papandreou has been on a PR tour since Friday when he visited Germany. Along the way, somehow he convinced France’s Nicholas Sarkozy that “speculators are creating malicious rumors” about his country. With some political wind from the left at his back, he took it up a notch ahead of meeting with Geithner today in Washington and called whoever he can’t see “unprincipled speculators.” George, you have to be kidding me. ...

Jim Rogers tells Bloomberg TV that Greece should go bankrupt , and that this would be good for the euro and for Europe in the longer term. As Jim points out, a Greek bankruptcy would show everyone that the euro is a serious and sound currency based on the strength of its financial commitments. Of course, he does not expect this level of discipline to prevail. He also has some sharp words for those in the political sphere who have tried (as always) to blame speculators for "attacking" the currency and Greece's debt. Some much needed common sense and basic education on the nature of markets and economic fundamentals here (that you might want to share with others). Check out the full interview and stop in tomorrow for more on the state of Greek and European finances. We've got a lot to talk about on this subject this week, so stay tuned.

Here's what I'm currently watching: noted short-seller and hedge fund manager, Jim Chanos gives a talk on "Overheating & Overindulgence" in China at the London School of Economics Alternative Investments Conference (see also: Bloomberg video ). We've noted here before that Chanos is hugely bearish on the Chinese economy and looking to bet against its overheated real estate and construction businesses by shorting commodities and ancillary suppliers. In this presentation Chanos offers his thoughts on China's GDP growth, its credit excesses, and the interplay of its economic and political system. Very interesting stuff, even if Jim Rogers is skeptical over the recent findings of newly-minted China experts. Is he right? Given my limited knowledge of the situation, I'm inclined to agree with Marc Faber (a friend of both Chanos and Rogers) who notes that Jim Chanos is "hyper smart" and willing to back his thesis, though it's uncertain how...

Jim Rogers joins Bloomberg TV for a lengthy discussion about the economy and the outlook for global stock markets and commodities. Also up for discussion: the vote on Bernanke's 2nd term as Fed Chairman, and why the world would be better off without central banks. Go get 'em, Jim. Hat tip to the gang at Business Insider . Related articles and posts: 1. Ben Bernanke: man of the year? - Finance Trends. 2. Jim Rogers on CNBC, Tech Ticker - Finance Trends.

Tim Geithner and the New York Fed told AIG to limit their swaps disclosure . The saga continues and Bloomberg has the details: " The Federal Reserve Bank of New York , then led by Timothy Geithner , told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show. AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa , ranking member of the House Oversight and Government Reform Committee. The New York Fed took over negotiations between AIG and the banks in...

Jim Rogers is in New York, making the rounds on business television. Here's a great interview with Rogers on CNBC , talking with Maria Bartiromo about the Fed, Geithner, and the state of the US' finances. He also shared his investment (and trading) outlook on the US dollar, foreign currencies, and commodities. Rogers agrees that gold has rallied strongly and is ready for a move down, but notes that he is keeping his gold for the long term, and he's still quite bullish on relatively undervalued silver. Jim also sat down to talk with Tech Ticker and made some very interesting comments on the bogus economic recovery and the future of America. Rogers feels that most of the phantom recovery has been based on more money printing, debt, and wealth transfers from taxpayers to failed banks and their creditors. He also makes some very serious comments about our stepped up involvement in Afghanistan and the long-term consequences for our nation and its economy . More Tech Ticker seg...

Will sovereign debt be the new subprime? This the question posed by Gillian Tett in today's FT: " A few weeks ago, Claudio Borio, head of research at the Bank for International Settlements, warned in a solemn note to Group of 20 leaders that modern financial policymakers are "driving while just looking in the rear-view mirror": western finance officials have focused so much on past risks that they fail to spot new dangers. Worse still, as policymakers rush to implement reforms in response to one financial calamity, they are apt to create distortions that pave the way for the next disaster. Just such an unintended consequence could now be festering in the banking sector, as its balance sheets are increasingly stuffed with government bonds. These days, there is a near-unanimous belief among western regulators that one way to prevent a repeat of the 2007-08 crisis is to stop banks taking crazy risks with subprime mortgage bonds or complex instruments such as collateral...