Rogers: Don't Believe the Market Surge, "Financial Armageddon" Will Come

After hours of negotiating, European policymakers agreed on Friday morning that the bloc’s bailout fund, better known as the European Stability Mechanism (ESM), would be able to lend directly to recapitalize struggling banks. Following the news, the markets reacted happily in agreement. But one person doesn’t see it as joyfully…
Ever-skeptical investor Jim Rogers told CNBC that the move does absolutely nothing to help solve the region’s biggest problem of high debt levels.

“Just because now you have a way to get [the banks] to borrow even more money, this is not solving the problem, this is making the problem worse,” Rogers said.

Negotiations lasted throughout the night into Friday morning and finalized the agreement that these banks would be able to have money lent to them to recapitalize without increasing a country’s budget deficit and without preferential seniority status.

The market euphoria brought on by the news of the agreement by European officials surged the Asian stocks as while the euro and risk assets like oil. And Rogers believes that the surge won’t last but the advocate of commodities-based investing doesn’t hedge away from his joy that the commodities jumped a bit today after the news.

“I own commodities, I’m delighted they are going up today—they are going up a lot. [But] I’m not jumping into anything.”

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