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Jim Rogers overcomes his shyness to express some dissatisfaction with the government:

U.S. investor Jim Rogers said the U.S. government's plan to bolster Fannie Mae and Freddie Mac is an "unmitigated disaster."

The largest U.S. mortgage lenders are "basically insolvent" after the collapse of the subprime mortgage market, said Rogers, who in April 2006 correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce.

Taxpayers will be saddled with debt if Congress approves Treasury Secretary Henry Paulson's request for the authority to buy unlimited stakes in and lend to the beleaguered companies that purchase or finance almost half of the $12 trillion in U.S. home loans, Rogers said.

"These companies were going to go bankrupt if they hadn't stepped in to do something, and they should go bankrupt," Rogers said.

Posted by edelfenbein at July 14, 2008 12:16 PM