Thursday, November 21, 2013

Short sellers not the problem

Jim Rogers on his shorting Fannie and Banks around year 2006 - 2008:

Short sellers do not make Fannie Mae go from $70 to $0, I assure you, the only thing that can make that happen is serious fundamental problems. So yes, everybody knew I was nuts back in those days!

And then, they started blaming it on me and on the short sellers, all of the problems. Nobody likes to take responsibility for their mistakes, certainly not politicians, but it was clear that first they laugh at you, then they ridicule you and say it’s your fault and blame it on you. 

Eventually they all say, “Oh, well we knew that. We thought of it ourselves! We knew that Fannie Mae was a fraud.” But that’s a difficult and sometimes painful process.

Jim Rogers

Warren Buffett

Nouriel Roubini