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Jim Rogers' advice amid all the global economic turmoil: Short stocks, consider commodities and to heck with European bailouts.
A day after the billionaire investor told CNBC that the Spanish bailout was "absurd," he amplified on his point that letting any country go bankrupt wouldn't be the worst thing.
"New York City went bankrupt, the world didn’t come to an end. Mississippi went bankrupt once, the world hasn’t come to an end. Detroit’s bankrupt, the world hasn’t ended," Rogers said Tuesday on CNBC's "Closing Bell."
So if banks in ailing Spain and Greece go bankrupt, bondholders and bankers will lose money, he shrugged.
"What happens is you reorganize and you start over. It’s been happening for a few thousand years. There’s nothing new about it."
Had the U.S. not let Lehman Brothers fail at the start of the 2008 recession, "we would still be suffering," he said. "They would still be bailing out everyone in sight."
His strategy in the event of a global selloff: Sell short.
"I’m not advocating because I’m short, but I’m short because I think there are going to be more problems in the world economy in the next year or two. That’s how you protect yourself in times like this," he said. "What they’re doing is they’re making this situation worse."
Why?
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