Veteran investor Jim Rogers says he knows who’s responsible for the latest carnage on Wall Street. From Commodity Online (India) earlier today:

In an exclusive interview to Commodity Online, Rogers- who is regarded as one of the top global commodities investors- said that “gigantic amounts of leverage caused by a few totally incompetent people within the firms” have led to the collapse of Lehman Brothers and problems plaguing Merrill Lynch and AIG.

Rogers said investment firms like Lehman used to invest heavily on commodities and as the funds have moved out of commodities, it has hit the markets hard.

“Commodities and everything else are being sold in forced liquidations because of the financial situations at many firms,” Rogers said.

As for the economic effects of the financial crisis? From the website:

He predicted that the US economy in particular and the economies in several countries across the globe will continue to suffer thanks to the crisis. “After this panic and forced liquidations, the economies will continue to worsen, but the sound investments will recover first after the panic,” Rogers added.

Source:

“Incompetent people forced Lehman collapse: Rogers”
Commodity Online (India), September 17, 2008

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