This won’t come as a big surprise, but uber-investor Jim Rogers doesn’t like the Paulson plan:
"It’s astonishing, devastating, and very harmful for America and American citizens," he tells me. "It means we’re in for the worst recession since World War II, as well as higher long-term interest rates, higher inflation, higher taxes, a weaker dollar and substantially lower stock prices."
… Addressing the explosive two-day Dow Jones Industrial Average rally of nearly 779 points, Mr. Rogers ridicules the buying binge, insisting that investors "were foolishly sucked in by hysteria and a buying panic. I wouldn’t buy now because it’s insane." Describing the rise as artificial and unsustainable, he contends "it’s only a matter of time before reality sets in and the market heads down again." Making matters worse, he says, it’s "embarrassing to see how little the presidential candidates know or grasp what’s going on, just like the current administration."
… The 65-year-old manager presently owns some dollars and says he thought the recent greenback rally would continue. "Now I’m not so sure, that rally may be over," he says. Mr. Rogers has covered his short sales â€” a bet stock prices will fall â€” on Fannie Mae, Citigroup, and some companies in the homebuilder sector. On the buy side, he recently began to acquire stocks in China and Taiwan.