Rogers: 100% chance of another 2008 crash By Katie Holliday
| November 10, 2011
Investment veteran Jim Rogers has said he is 100% sure the
world will face another financial crash prompted by the
eurozone debt crisis, adding this time it will be worse
than 2008's collapse.
The CEO and chairman of Rogers Holdings told CNBC the upcoming
crisis could be worse than the Lehman Brothers collapse
three years ago due to astronomically higher debt levels
in economies.
"In 2002 it was bad, in 2008 it was worse and 2012
or 2013 is going to be worse still - be careful," he
warned.
"The world has been spending staggering amounts of
money it does not have for a few decades now, and it is
all coming home to roost.
"We are certainly going to have more crises coming
out of Europe and America; the world is in trouble."
said Rogers.
He said borrowing more cash to fix the problem was no longer
a solution for indebted nations.
"Last time, America quadrupled its debt. The system
is much more extended now, and America cannot quadruple
its debt again. Greece cannot double its debt again. The
next time around is going to be much worse," he said.
Rogers told CNBC he believed the only solution to the global
financial crisis was to allow "everyone to go bankrupt".
"Get everyone in a room and decide you will go bankrupt.
You will survive and we are going to ring-fence you. We
will make sure your cheques clear. Everyone's deposits are
going to be ok, the system is going to survive," he
said.
However, he warned letting Greece leave the euro would
be a disastrous decision because the country would go back
to its "same old ways".
"They would start printing money, no one would lend
them money and inflation would go through the roof. The
Greek economy would get worse and worse. That is not good
for Greece and it is not good for the world.
"It would be better off if we can hold the euro together
and reorganise. People are bankrupt and when people are
bankrupt you might as well face reality."