Jim Rogers, Paulson is bailing out his Wall Street friends

Bloomberg TV’s Betty Liu interviews Jim Rogers on the phone about the bankers plan to save themselves from bankruptcy on Starting Bell.

Betty Liu asks, “What is your take on the Paulson bailout package?”

Jim Rogers, “It’s lunacy, it’s absurd it will bail out some of Pualson’s friends on Wall Street, but there are 300 million Americans and 6 billion people in the world. This is not good for the rest of us, it is welfare for the rich … welfare for Paulson’s friends but not good for you and me.”

Betty Liu, “But Jim, … if we don’t pass this package it could be a disaster, this is really a bailout out for the American public.”

Jim, “Propping up failing banks will make things worse in the end. Here we have [Bernanke] and Paulson who have made mistake after mistake and what are we doing now? Bernanke said under oath that there was no problem in the housing market. And now we are going to them?”

Betty, “Jim, then what should we do?”

Jim, “Lets some people go bankrupt, clean out the system. We’ve had recessions from the beginning of time … its not the end of the world”

Rogers adds, “Paulson is worried about his friends. Listen when the head of Morgan Stanley calls Paulson he takes the call when a school teacher in Louisiana calls Paulson [the call] doesn’t even get through the switchboard.

Betty, “In a Bloomberg poll Obama was voted as better for handling the financial crisis. Who do you think would be better?”

Rogers, “Betty a pox on both their houses! Neither one of these people have a clue to what is going on. Both of them will make it worse I am embarrassed. I will not vote for one of these turkeys. Do your hear these guys on television talking about the situation? They change their minds every week. They are trying to figure out what the US dollar is. They didn’t know what trades in the world markets. They’re trying to figure out what bonds are these people are embarrassing.”

Rogers generally agrees with Rep. Ron Paul (R-TX) who is on the House Financial Services committee and an expert in Austrian economic theory.

Video: Jim Rogers on Paulson’s outrages plan for the economy