Soros: Europe Should Be More Like America!
Are you ready for a second Great Depression?
Mega billionaire and hedge fund man George Soros is, and here's why he thinks it could happen...
In an op-ed for the Financial Times, Soros argues the financial markets are driving the globe to a second Great Depression. The political consequences will be "incalculable" and European authorities have "lost control of the situation," Soros said. He believes European leaders need to regain control now, and outlines three measures that could be taken:
Markets are mixed Thursday, with the Nasdaq (Nasdaq: QQQ) down about 1.3 percent, the S&P 500 (NYSE: SPY) about flat, and the Dow Jones (NYSE: DIA) up 0.4 percent.
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Mega billionaire and hedge fund man George Soros is, and here's why he thinks it could happen...
In an op-ed for the Financial Times, Soros argues the financial markets are driving the globe to a second Great Depression. The political consequences will be "incalculable" and European authorities have "lost control of the situation," Soros said. He believes European leaders need to regain control now, and outlines three measures that could be taken:
- Europe could create a common Treasury;
- "systemically important" banks should be subject to the direction of the ECB on items like maintaining credit lines and outstanding loans. This would allow the banks to access recapitalization funds through the EFSF; and
- the ECB needs to lower its discount rate -- even if just temporarily -- so nations like Spain and Italy would be able to refinance debt cheaply. Then the ECB could encourage countries to finance themselves through the sale of T-Bills, with major banks buying the bills, and the banks being free to rediscount the bills with the ECB should they stand to earn less on the bills than in cash.
Markets are mixed Thursday, with the Nasdaq (Nasdaq: QQQ) down about 1.3 percent, the S&P 500 (NYSE: SPY) about flat, and the Dow Jones (NYSE: DIA) up 0.4 percent.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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