No Offense Mexico, But We Want Our Currency To Look Like Yours

George Bush and Bernake love the pretty pictures on the Mexican currrency and all the jingling from coins.

Jim Rogers sums up how this all is playing out and why the market won’t rally on Fed moves:

I don’t know where these guys get the audacity to take our money, taxpayer money, and buy stock in Fannie Mae,” Rogers, 65, said in an interview from Singapore. “So we’re going to bail out everybody else in the world. And it ruins the Federal Reserve’s balance sheet and it makes the dollar more vulnerable and it increases inflation.

The SKF which is a 2x leveraged inverse financial ETF has moved 10 percent today from the lows. That’s an index. We are either in full crash mode or panic has set in enough for some kind of short-term bottom.

According to Bloomberg – Goldman’s Zimmerman said today the U.S. government’s plan to rescue Fannie Mae and Freddie Mac won’t benefit shareholders. He lowered his share-price estimate for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17.

Rogers said he had not covered his so-called short positions in Fannie Mae and would increase his bet if it were to rally. Short sellers borrow stock and then sell it in an effort to profit by repurchasing the securities later at a lower price and returning them to the holder.

The U.S. economy is in a recession, possibly the worst since World War II, Rogers said.

“They’re ruining what has been one of the greatest economies in the world,” Rogers said. Bernanke and Paulson “are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.”

Disclosure- Long GLD, OIH, PAAS, SLW and Canada