No Pain, No Gain

I am not going to give financial advice on this blog but I think financial analyst Jim Rogers makes sense in this article. He essentially says that only when assets are in the hands of those that can more efficiently use them will the recovery will begin and any government action is going to simply delay a recovery. He warns against getting back in the market at this time. However, he does suggest buying Japanese Yen, Swiss Francs and agriculture products. I assume he means commodities and not for personal consumption. ;)

But tell us how you really feel Mr. Rogers:

"The way to solve this problem is to let people go bankrupt.

"Then you will hit bottom and then you start over. The people who are sound will take over the assets from the people who aren't sound and we will start over. This is the way the world has worked for a few thousand years."

The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Rogers warned.

"We're setting the stage for when we come out of this of a massive inflation holocaust."

Of course the Austrian Economists have been saying this for quite some time.