Jim Rogers On The Housing Bubble
Famed investor and writer Jim Rogers took some time for a few questions from The Housing Bubble blog this morning.
Q: What are your general thoughts on the concept of a housing bubble?
JR: We are in one in much of the US and in some other countries partly because interest rates were driven too low and too much money has been printed.
Q: As someone who is familiar with international trends, have you observed home price imbalances in overseas cities?
Q: Fannie Mae and Freddie Mac are at the center of a storm right now. Do you think the firms pose a risk to the financial system?
Yes. I am short FNM.
Q: There are a great deal of mortgage backed securities out there. Do you see any problems for the values of the MBS's or for the holders?
JR: Serious problems for both.
Q: How do you see commodities reacting as housing prices ease or even decline?
JR: The commodity bull market has another 9-18 years to run. There will be consolidations along the way as there always are and have been in every bull market in history.
Thank you Mr. Rogers!