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Jim Rogers: Close the Federal Reserve

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Last week's action by the Federal Reserve allowing TARP banks to resume stock buybacks and increase dividends was just the latest example of the Fed's willingness to inject itself into theoretically free financial markets. "Breakout" spoke to investing legend Jim Rogers to discuss the Fed, Japan, and stock and currency markets.

After Rogers ran through a sharp critique of Alan Greenspan and Ben Bernanke, we played Kingmaker and asked him what he would do were we to make him the Federal Reserve Chairman.

"I'd shut it down," Rogers told us without hesitation.

As for the current U.S. equity market, Rogers says it "needs a rest" after an extended rally. Rogers cites the highest corporate profit margins in 18 years as a reason for caution: "Once something gets to all-time highs, it makes sense that it's going to go lower."

Meanwhile, stocks Monday are jumping, with the Dow reclaiming 12,000, following this weekend's news that AT&T will purchase T-Mobile in a $39 billion stock and cash deal, creating the largest U.S. mobile provider.

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