- Stocks May Rise Further after Fed Waves on 'Risk Trade'
- Obama in China Grapples with Economic Strains
- Buffett's Berkshire Hathaway Boosts Stake in Wal-Mart
- Microsoft Co-founder Allen Diagnosed with Cancer
- Time Warner to Spin Off AOL on December 9
- Gates Boosts Waste Management, Coca Cola Stakes
- What's Kept Stock Rally Going? Fear, Not Confidence
- US Cities With Most Underwater Mortgages
- Citi Shares, A Strange Indicator Of Unemployment?
- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- U.S. May Wind Up Green With Envy
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- BofA Ex-Counsel: I Was 'Stunned' When I Got Fired
- Solar Emerges From A Dark Period
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Stanford Receiver to Release Funds Of Frozen Acounts
- Millions May Have to Repay Part of Obama Tax Credit
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
Text Size 
The Treasury and the Federal Reserve should not bail out Fannie Mae and Freddie Mac as this would increase the already gaping U.S. public debt, investor Jim Rogers, CEO of Rogers Holdings, told "Worldwide Exchange."
Asked if his remarks could be interpreted as trying to talk down the stock of the two companies, which have been plummeting recently, he said: "I've been short Fannie Mae since I came here three years ago or four years ago. This is bad for America, who cares if I make some money...I'm short lots of banks."
The Treasury Department and the Federal Reserve on Sunday offered massive aid to bolster confidence in Fannie Mae [FNM
Loading...
()
] and Freddie Mac [FRE
Loading...
()
] and head off a potential financial market meltdown, as the two finance around $5 trillion, or about half, of U.S. home loans. But investors' enthusiasm for the measures was short-lived.
"In two years or three years, when six or eight other people are failing, America won't have any more bullets left," Rogers said, adding that Sunday's move increased the burden of public debt and did not solve the root cause of the crisis. "The patient has cancer, Band Aids won't help."
Letting the two fail would throw the country in recession but would ensure that the system is cleansed, he added. "It would cause problems in the economy but we've got problems in the economy anyway."
Rogers said he was not investing in oil currently because the price was too high, but that new reserves have to be discovered quickly for the prices to come down.
He also said he was investing in airlines, whose stocks have recently been hammered by fears the fuel price would cut into their profits.
"I am buying airlines. If you fly a lot, you'll see that you can't get a seat, the rates are going higher. The capacity is going down and the demand is still there," Rogers said.
Print
Email
- Where, what, how.
- CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
- Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
- De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
- Why are the Chinese concerned about the progress of U.S. health care legislation?
- CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
Data is a real-time snapshot *Data is delayed at least 15 minutes