Aug. 3 (Bloomberg) -- The U.S. subprime-market rout that wiped out $2.1 trillion from global share values last week has ``got a long way to go,'' Jim Rogers said.
By Chen Shiyin and Pimm Fox
Concern that defaults among subprime mortgages may be spilling over to other credit markets and hurting earnings and takeovers last week sent the Morgan Stanley Capital International World Index to its worst weekly drop in five years. Further losses may be in store even as shares rebounded this week, said Rogers, chairman of New York-based Beeland Interests Inc.
``This was one of the biggest bubbles we've ever had in credit,'' Rogers, who predicted the start of the global commodities rally in 1999, said in an interview from Hong Kong. ``I have been and am still short the investment bankers in America. I'm also short homebuilders.''
The MSCI World plunged 5.3 percent last week, the most since the five days ended July 19, 2002, after Countrywide Financial Corp., the largest U.S. mortgage lender, said more borrowers are defaulting on mortgages and D.R. Horton Inc. reported its first quarterly net loss in at least a decade.
No comments:
Post a Comment