They [Fed] should stop buying bonds. They should let interest rates and the market find its own level. It might mean some bankruptcies.
In Scandinavia in the early 1990's, they had a problem. They let businesses go bankrupt, and there was terrible pain for a year or two, but Scandinavia reorganized and become one of the best parts of the world economy.
On the other hand, Japan refused to let anyone go bankrupt, and they lost a decade or so because of artificial stimulation. It doesn’t work. It has never worked. The only thing that works is when people fail, go bankrupt, and start over.
VIA MARKETWATCH
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
