Rogers: Let the banks fail

Bailing out the banks is not a solution to the debt crisis, and eurozone leaders should let troubled banks fail, said investment veteran Jim Rogers.

Rogers told CNBC he expects the European Central Bank to follow in the Federal Reserve's footsteps and begin quantitative easing.

"What they are doing in Europe is saving the day, not saving the system," said Rogers. "Just pumping up and bailing out another bank is not the solution, we need to let the banks fail."

The investor said some measures could be taken to protect shareholders, but bondholders should bear the brunt of the crisis.

"Yes you can rate test banks. You can get all of them together in a room and say you are going to fail, you are going to survive and we will work with you to make sure everyone's cheques still clear and deposits are good. Yes, help stockholders, but why bail out bondholders? Let them fail," he added.

With both and crude oil and gold stocks rallying by over 2% last week, Rogers maintained his view commodities are the best place for an investor in today's troubled economic environment.

"I own commodities. I still maintain that is the best position to be in. If things continue to worsen they will print more money, that is all Bernanke knows to do. It is good to hold real assets at a time like this," said Rogers.