Jim Rogers vs Warren Buffett

The recent US debt problem has split the investor camp into two. One which believes that US will indeed go into a recession and the other camp that believes that US will not go into a recession. One of the camp has Jim Rogers as its patron while the other has Warren Buffett as its member.

Jim Rogers sees no way out of this US debt problem. He said in a CNBC interview yesterday that “it’s physically, humanly impossible for the U.S. to ever pay off its debt” and “they can roll it over and continue to play the charade, but the U.S. is bankrupt.” He also added that investors should “nearly always buy into panic just like you should sell hysteria.” The full article can be found here.

On the other hand, Warren Buffett thinks the US credit downgrade by S&P was absurd and that he would give the US a “Quadruple A” credit rating if possible. He also sees no double-dip recession in US. Articles on him can be found here and here. Maybe Warren knows something about US that we all don’t know?

Personally, I gravitate towards Jim Rogers’ view. I see huge trouble brewing in US and there’s a high chance that US will go back into recession. Also, like one of the articles said, America is running a giant Ponzi scheme – printing more of the green stuff to pay off the older debts. The truth is out there for all to see and the US has nowhere to hide now.

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6 thoughts on “Jim Rogers vs Warren Buffett

  1. One must understand that the whole world is a ponzi scheme – every country is printing money to pay off debts and obligations. This is why there is inflation and economic growth. So I don’t see any problems with the economy unless some countries decided to stop printing $$$.

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