The EU/IMF raiding
bank accounts in Cyprus to bail out the country's financial system sets a
dangerous precedent and investors should "run for the hills" said
investor Jim Rogers, chairman of Rogers Holdings, on "Squawk on the Street" Thursday.
Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned.
"What more do you need to know?
Please, you better hurry, you better run for the hills. I'm doing it
anyway," Rogers said. "I want to make sure that I don't get trapped.
Think of all the poor souls that just thought they had a simple bank
account. Now they find out that they are making a 'contribution' to the
stability of Cyprus. The gall of these politicians."
"If you're going to listen to government, you're going to go bankrupt very quickly," he added.
"I, for one, am making sure I don't have too much money in any one
specific bank account anywhere in the world, because now there is a
precedent," he said. "The IMF has said 'sure, loot the bank accounts'
the EU has said 'loot the bank accounts' so you can be sure that other
countries when problems come, are going to say, 'well, it's condoned by
the EU, it's condoned by the IMF, so let's do it too.'"
Jim Rogers, a voice closely followed by market participants, began shorting financials, home builders and Fannie Mae in 2006, and is famous for co-founding the Quantum Group of Funds with billionaire George Soros. Quantum is famously regarded for "breaking" the Bank of England and forcing a devaluation of the pound.
(Related: Cyprus Banks Reopen, Under Tight Controls)
Rogers said that he has started the process in several European
countries to get his bank accounts under the insured amounts. "Everybody
should do the same thing too, because they're going to go crazy the
next time around," he said.
In Europe, Rogers said that he
owns Swiss francs and several long-term investments he's had for
decades, but added that he is "certainly not buying there. It's pretty
scary what's going on in Europe, especially when they're taking money
out of people's bank accounts."
On the stock market hitting
all-time highs, Rogers said that "it is very artificial. If you give me
a trillion dollars, I'll show you a good time too and a lot of people
are having a good time. I'm somewhat skeptical because I know it's going
to end badly."
"I'm certainly not investing in the U.S., because the U.S. is making
all-time highs based on money printing," he said, adding that he's put
money in Russia and Japan recently. "The whole world is benefiting from
all this money being printed, but there are better places than where the
all-time high is."