George Soros: "Three Bold Steps" To Avoid Global Great Depression
George Soros has made a lot of money in his day as an incredibly successful speculator. He is the chairman for Soros Fund Management as well as Open Society Institute and was the biggest winner over the UK's Black Wednesday sterling crisis. Short to say, the man knows financial crisis and how to maneuver with it.
Because of his impressive portfolio and experience, he has the utmost respect from the investment industry. Forbes just recently wrote a three-page special about whether it is necessary to follow Soros' lead in selling off your gold, while CNBC last week published his interview in which he proclaimed that the U.S. is already in a double-dip recession.
So when Soros wrote an essay for Financial Times today, titled “How to stop a second Great Depression,” the prestigious publication gave him the floor.
In his essay, Soros lays out “three bold steps” to get the global economic market back on its feet and prosperous once again.
His main focus of the essay is focused around the European Central Bank and their direct impact on not only the EU but the globe. He urges Europe to create a common Treasury, recapitalize its banks and protect vulnerable states. His efforts
"Since a euro zone treaty establishing a common Treasury would take a long time to conclude, in the interim the member states have to appeal to the ECB (European Central Bank) to fill the vacuum... Both the banks and bonds of countries such as Italy and Spain need to be protected," he writes in his essay.
He also mentions that the EFSF (European Financial Stabilization Facility) should recapitalize banks who would --in turn-- have to maintain credit flows under the watch from ECB.
"These measures would allow Greece to default without causing a global meltdown," Soros said. "That does mean that Greece would be forced in default ... How Greece fared would be up to the Greeks."
Wealth Wire recommends that you take a moment and read his essay directly as it has significant implications for our financial environment. Click here for the three ways Soros suggests to turn things around...+1
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