Jim Rogers: Japan Tried It This Way and Their Stock Market is Down 75%

Source: Bloomberg
On BloombergTV today, Jim Rogers, chairman of Rogers Holdings, shared his views on the U.S. credit rating downgrade and told viewers that money printing, bank bailouts and quantitative easing (QE3) by the Federal Reserve will not work to help the economy. He thinks QE3 will just bring more inflation and social unrest. He also shared his views on gold, silver, EUR/USD, commodities and the fall in equities. Watch the Bloomberg video after the jump.

"The only thing that works is to face reality. Let people who are bankrupt go bankrupt. The Japanese tried it this way, they have not let anybody go bankrupt for 20 years. You remember zombie banks, zombie companies. The Japanese stock market is 75% below where it was 21 years ago. This system doesn't work. The Americans have already had one lost decade, we're going to have two lost decades or three lost decades at the rate things are going"

Since QE2 ended on June 30, 2011, the S&P has given up almost all of its gains since Bernanke's Jackson Hole speech on QE2 (on 8/27/2011),  which sparked the Tepper rally. Many fund managers, analysts, bloggers and twitterers I follow expected this to happen.

Source: Bloomberg TV