Rogers: “100% Chance Of Crisis Worse Than 2008,” Italy Implodes
Record surge in bond yields as Italian debt crisis passes point of no return
Paul Joseph Watson
Wednesday, November 9, 2011
Veteran investor Jim Rogers warned this morning that there is a “100% chance” the world is facing a financial crisis worse than 2008, as Italy was plunged into chaos on the back of soaring bond yields which now make the country’s huge debt unsustainable, mandating yet another EU bailout.
“We’re certainly going to have more crises coming out of Europe and America; the world is in trouble. The world has been spending staggering amounts of money that it doesn’t have for a few decades now, and it’s all coming home to roost,” Rogers, CEO and chairman Rogers Holdings told CNBC.
Rogers said the only solution was to allow countries to go bankrupt and start again, arguing that the continuing cycle of debt would only exacerbate the problem in the long term.
“Last time, America quadrupled its debt. The system is much more extended now, and America cannot quadruple its debt again. Greece cannot double its debt again. The next time around is going to be much worse,” Rogers said, adding that the chance of the Eurozone crisis causing another global financial meltdown was “100 per cent” and that the fallout would be worse than the 2008 collapse.
Rogers’ warning came as Italy was plunged into crisis and bond yields surged to unsustainable levels despite Prime Minister Berlusconi’s promise to resign, a move that was seen as a stabilizing factor.