Monday, November 9, 2009

Jim Rogers Says Roubini Did Not Do His Homework, Again

Jim Rogers says that that the ubiquitous Nouriel Roubini did not do his homework when he said there was an asset bubble going on. When asked which homework, he said: "all of it".

Rogers says that silver is 70% below its all time-high, as are sugar, coffee, cotton, natural gas and others. Please see our recent posts on sugar and coffee, on cocoa and other commodity ETFs, and our many posts on natural gas.

Rogers says: "I have a problem talking about a bubble when assets are this depressed from their all-time highs. A bubble is when assets are screaming to new highs everyday, everyone is talking about them, and everyone owns them. Right now, virtually no one owns commodities. So for Mr. Roubini to talk about a bubble in commodities defies comprehension. It proves he does not understand markets".

He says he is flabbergasted at Mr. Roubini’s because there is not a single market in the world making all-time highs except Gold, US Government Bonds, Cocoa, and the Sri Lankan stock market.

"And since Mr. Roubini thought oil would stay below $40 a barrel for all of 2009, I would love for him to tell me and the rest of the world exactly where are all the oil supplies because the International Energy Agency (IEA) — which has the best global data set on energy supplies — has no idea where is the oil. Mr. Roubini should tell us where this price suppressing oil supply is hidden. All the oil possessing countries in the world have declining reserves. All the oil companies have declining reserves. So Mr. Roubini must know something the rest of us don’t".

There is more! On gold at $2,000 being "utter nonsense" according to Roubini: "I think you’re going to get a chance to call him before 2019 to ask him what he thinks of Gold at $2,000 and why he thought it was “utter nonsense.” He goes on to talk about fiat money and gold and also says that no new large gold mines have been opened in decades and the mines are all depleting.

"...given all the money printing in the world, we will see much higher prices for hard assets".

"...I will make more money in other commodities such as silver, cotton, or coffee — all of which are terribly depressed".

Read full interview.

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