[Global Crisis] Billionaire investor warns of fresh global crisis ‘in 2013 or 2014′

Jim Rogers explains that he remains bearish on the outlook of the global economy. (Yahoo! photo)

Commodities guru, Jim Rogers, warns that the current financial crisis is set to worsen in the next couple of years, with fresh problems surfacing in 2013 or 2014.

Speaking to Yahoo! Singapore at the Shares Investment Conference 2012 press briefing on Thursday, Rogers explained that he remains bearish on the outlook of the global economy because "nobody's solving the problems in Europe".

"At the moment there's an election in America and an election coming up in Germany. Both of those countries are major economic powers, and they're doing everything they can to get re-elected. They're both spending a lot of money and they're printing a lot of money to get through the next election," said the 69-year-old American investor, who co-founded of the Quantum Fund along with George Soros.

Rogers, who relocated to Singapore with his family in 2007, added, "But I would suspect that after the elections, probably 2013, 2014, you're going to see more economic problems… and a lot of those problems will come out of Europe."

He then pointed out that nobody's really decreasing their debt in Europe, with most countries struggling under increasing debt except for a few small countries like Bulgaria. He added that current measures to help the affected nations are merely pushing these problems away into the future.
But that's not the only problem.  Respected stock trader and author Mike Bellafiore, who was also present at the press briefing, said that the current crisis is not just about debt.

According to Bellafiore, who is a partner and co-founder of New York proprietary trading firm, SMB Capital, the current financial crisis also has a problematic political dimension to it.

The trader who owns three businesses in America said, "In 2008, there was really a banking crisis. (The current crisis) is more of a political crisis, in the sense that essentially Europe is at the mercy of (Angela) Merkel and how France and Germany decide to handle the situation with Greece."

Bellafiore then raised two questions: Is Germany really going to continue to pay for the debts of Greece, Portugal, Italy and Ireland? And how likely is it for someone who lives in Greece to sign up for years of austerity when it wouldn't be difficult for a "populist Greek politician" to rally the people's support to leave the European Union and start their own currency?

"It's not just going to be just an issue of 'Can we work out our debt?'. It's an issue of 'Do the people who are making these decisions have the appetite to continue?' and 'Do the residents have the appetite to sign off on this?'," he said, adding that at the moment, nobody really knows the answer.

Turning to the issue of China's slowing economy, however, both investors are in fact pleased and optimistic rather than worried. Rogers explained that China's recent policies to cool its economy are taking effect, so that they can "pop" their property bubble and defeat inflation.

Bellafiore said that China "has become softer purposely" and they are "trying not to grow as quickly" because of inflation, as opposed to it being an effect of the global crisis.
Rogers also added that Asian nations have generally been doing well in building up their reserves and spending less, which he says, is the way to go for countries to tide over the financial crisis.
According to the investor who currently lives in Singapore with his family, the city-state in particular, has been "doing a lot of things right".

"(Singapore) doesn't have staggering debts like America does. It's been saving money for a rainy day and loosening up its economy and its political system in many ways," he said.

The father of two, who rides a bicycle to and from his children's school every day, has only one tiny problem with Singapore.
"I just wish they would be more bicycle friendly," he said.

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[Investment] Warren Buffet's Brilliant Investment Insights

Warren Buffet or ‘The Sage of Omaha’ is one of the richest men in the world. He is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. Buffett's speeches are known for mixing business discussions with humor.

Each year, Buffett presides over Berkshire Hathaway's annual shareholder meeting in the Qwest Center in Omaha. Berkshire's annual reports and letters to shareholders, prepared by Buffett, frequently receive coverage by the financial media.

His words reflect his attitude and mind-set towards money which made him eminent in the world. Here are few brilliant and inspirational investment insights from the legendary Buffet which will make you reorganize your mind-set towards the way you handle your money.

“Rule No. 1: Never lose money. Rule No. 2: Don't forget rule No. 1”

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

“Never invest in a business you cannot understand.”

“Always invest for the long term.”

“Price is what you pay. Value is what you get.”

“Buy a business, don’t rent stocks.”

“Risk comes from not knowing what you're doing.”

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

“The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable.”

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

“Our favorite holding period is forever.”

“I really like my life. I’ve arranged my life so that I can do what I want.”

“I buy expensive suits. They just look cheap on me.”

“I am a better investor because I am a businessman and a better businessman because I am an investor.”

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for ten years.”

  

“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.”

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

“Time is the friend of the wonderful company, the enemy of the mediocre.”

“The Stock Market is designed to transfer money from the Active to the Patient.”

“We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely.”

“Risk can be greatly reduced by concentrating on only a few holdings.”

“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.”

“In the business world, the rearview mirror is always clearer than the windshield.”

  

“The investor of today does not profit from yesterday’s growth.”

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

“In a commodity business, it’s very hard to be smarter than your dumbest competitor.”

“Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.”

“A hyperactive stock market is the pickpocket of enterprise.”

“Valuing a business is part art and part science.”

“Chains of habits are too light to be felt until they are too heavy to be broken.”

“In a commodity business, it’s very hard to be smarter than your dumbest competitor.”

“A hyperactive stock market is the pickpocket of enterprise.”

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

“Valuing a business is part art and part science.”

“Chains of habits are too light to be felt until they are too heavy to be broken.”

“Enjoy your work and work for whom you admire.”

“A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem.”

“I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

“The business schools reward complex behavior more than simple behavior, but simple behavior is more effective.”

“Anything can happen in stock markets and you ought to conduct your affairs so that if the most extraordinary events happen, that you’re still around to play the next day.”

“I don’t measure my life by the money I’ve made. Other people might, but certainly don’t.”

“If at first you do succeed, quit trying on investing.”

“Turnarounds seldom turn.”

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”