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Jim Rogers on the Bear Stearns Bailout

Posted on March 19th, 2008 at 9:20 AM

Jim Rogers on the Bear Stearns Bailout Image

This interview is worth listening to...

(Bloomberg Video News)  

"You know the reason they did it this way was because, if Bear Stearns had to declare bankruptcy, you'd realize that Bear Stearns paid out billions of dollars in bonuses in January - six weeks ago. If he let them go into bankruptcy, they all would have had to send back their bonuses.

This is what they're doing, they're doing it so they don't have to give back their bonuses. That's why they didn't put them into bankruptcy. Jamie Dimon has gotten a great deal because the Federal Reserve is paying for it. The Federal Reserve is using taxpayer money to buy a bunch of Bear Stearns traders' Mazeratis."

I believe that the likes of a ‘Paul Volcker’ will be needed again.

Enjoy...

~Ernest O.

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