Finance guru and famed investor Jim Rogers spoke with CNBC on Thursday and discussed the financial collapse that is transpiring in the island nation of Cyprus. In the interview, he delivered an emphatic message to all bank depositors and investors: “run for the hills.”
Rogers explained that with the Troika leaders handing out a bailout to Cyprus in exchange for 40 percent minimum of depositors’ wealth, it establishes a tremendous precedent for other financial institutions and central banks around the world.
In Cyprus, public officials are reassuring everyone that theirs is a special case and that they should not worry about their present and future deposits into its banking system. With these words, Rogers urges caution and skepticism.
“What more do you need to know? Please, you better hurry, you better run for the hills. I’m doing it anyway,” stated Rogers on the news network. “I want to make sure that I don’t get trapped. Think of all the poor souls that just thought they had a simple bank account. Now they find out that they are making a ‘contribution’ to the stability of Cyprus. The gall of these politicians. If you’re going to listen to government, you’re going to go bankrupt very quickly.”
One suggestion he has, which is what he is doing at the present time, is to make sure that depositors don’t have too much money in one bank account and to have all wealth allocated through a series of institutions. Since the European Union and the International Monetary Fund (IMF) has approved of raiding bank accounts then other banks may follow their footsteps.
“The IMF has said ‘sure, loot the bank accounts’ the EU has said ‘loot the bank accounts’ so you can be sure that other countries when problems come, are going to say, ‘well, it’s condoned by the EU, it’s condoned by the IMF, so let’s do it too,” said Rogers.
On the topic of the United States stock market, he put forward the concept that it’s all artificial and not a genuine rally. The reason why is because the Federal Reserve has pumped so much money into the economy that it is bound to lead to fake rallies.
“It is very artificial. If you give me a trillion dollars, I’ll show you a good time too and a lot of people are having a good time,” added Rogers. “I’m somewhat skeptical because I know it’s going to end badly.”