Jim Rogers: 10 More Banks Should Have Failed
The Federal Reserve and the Treasury Department should have let 10 banks fail, not just Lehman Brothers, for the financial system to clean itself up, legendary investor Jim Rogers told CNBC Monday. The piles of cash thrown at the markets have not solved the fundamental problem of debt, which would have been solved only by letting institutions go bankrupt, while regulators should be in jail for allowing "crony capitalism" in America, Rogers said. When Lehman Brothers went bankrupt, "I thought thank goodness they're finally letting somebody collapse," he told "Worldwide Exchange," adding that former Treasury Secretary Henry Paulson should have let "10 (banks) go bankrupt."
