The losses imposed on Cyprus bank depositors by the European Union, European Central Bank (ECB) and International Monetary Fund (IMF) bailout should be a warning shot to bank depositors around the world, says investment legend Jim Rogers, chairman of Rogers Holdings.
“What more do you need to know? Please, you better hurry, you better run for the hills. I’m doing it anyway,” Rogers tells CNBC.
“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.”
Editor’s Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown
Rogers’ idea is that the risk of a confiscation of bank deposits now exists anyplace on the globe.
“I, for one, am making sure I don’t have too much money in any one specific bank account anywhere in the world, because now there is a precedent,” he says.
The IMF and European Union have told Cyprus, “loot the bank accounts,’” Rogers adds. “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.’”
As for what is a good investment right now, Rogers said he owns Swiss francs and some other long-term European investments, but has been investing in Russia and Japan recently, not the United States.
“I’m certainly not investing in the U.S., because the U.S. is making all-time highs based on money printing,” he explains.
“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. I’m somewhat skeptical because I know it’s going to end badly.”
The Cyprus crisis could ultimately affect the United States by infecting broader Europe, David Sterman, senior market analyst at StreetAuthority.com, tells Newsmax TV in an exclusive interview.
“The real threat to the U.S. is concern that things like Cyprus start to impact bigger and bigger dominoes in Europe, whether it’s Italy or Spain, and messes up all the financing mechanisms we’re desperately trying to arrange to keep things moving forward there,” he explains.
“So it’s really what Cyprus means for Europe and what Europe means for the U.S.”
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By Dan Weil