Taipan Investor Financial

Taipan Covers the Investment World in Stocks, Options, Forex, Commodities

Today is Friday, July 03rd, 2009

About the Author

Taipan is a retired commodity broker, forex trader and portfolio manager who enjoys following the forex, stock, and commodities markets and drawing upon his 40 years or so of trading experience to post articles to a series of blogs. While Taipan is not always right with his forecasts he usually offers some interesting insights into markets. Actually if he weren't so modest he would tell you that in the big strategic picture he is almost always right. Taipan is very distrustful of statements made by stock brokers, stock analysis, so called forex experts, and in general talking heads. The investor who thinks that the playing field is level and that he can depend upon MSNBC and CNN for inside trading information has got to be at least a little nuts. If you want to trade well you had better develop your own style and your own sources of reliable information. This blog will attempt to provide market trading information that will be helpful. However, always keep in mind that any decisions made to trade using this information are your sole responsibility. Taipan has been around long enough to know that the markets can make a fool out of anyone so never blindly follow what someone else suggests. To trade well you have to think well and the thoughts need to be your own.

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Jim Rogers on Fannie Mae Freddie Mac Bailout

July 14th, 2008 • Related • Filed Under

The legendary investor, Jim Rogers, had a few hot words to say about the Fannie Mae - Freddie Mac rescue plan announced by Ben Bernanke and Hank Paulson over the weekend.

“I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” said Jim Rogers from his new home in Singapore in a Bloomberg interview . “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.

These companies were going to go bankrupt if [the government agencies] hadn’t stepped in to do something, and they should’ve gone bankrupt with all of the mistakes they’ve made. What’s going to happen three years from now, when the situation’s much, much, much worse? They’re ruining what has been one of the greatest economies in the world. There are 300 million Americans that are going to have to pay for this.”

Jim Rogers has been criticized by some yahoo Americans for recently relocating his family to Singapore and for telling anyone who will listen that it is no longer safe to be holding US Dollar denominated investments. However, as one of the most astute investors in the world, who has a few billions to prove it, my take is that Jim is a smart guy to get out from in front of a train on it’s way to a horrible wreck.

Jim Rogers has been saying for the past few years that the US was on its way to big trouble. In the end, just like Bear Stearns, Fannie Mac and Freddie Mae will likely fail with disastrous consequences for the US economy. Even the US government doesn’t have the resources to prop up two institutions that have loss exposure running into the trillions of Dollars.

The fast fade in the stock market rally today should give you a good indication as to the direction that Freddie Mac and Fannie Mae are heading in. To me, it looks like their existence as viable financial institutions is just about finished. A full scale panic may be just days away.

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