Tuesday, March 09, 2010 - by Staff Report
George Soros
Billionaire investor and Soros Fund manager George Soros (left) says President Obama mishandled the financial crisis big time. Soros would have preferred that the government take over U.S. banks instead of bailing them out, a move he believes would have been more popular with Americans, The Wall Street Journal reports. "The solution that he found to the financial crisis, which was to effectively bail out the banks and allow them to earn their way out of the hole, was, in my opinion, not the right solution," Soros said in an interview with CNN. "He should have compulsorily replaced the capital that was lost." Soros says China did a better job of managing its banks by forcing them to increase their minimum capital requirements. Soros also noted that the "market fundamentalist" belief prevalent in the U.S. during the Fed tenure of Alan Greenspan is wrong, citing his own investment decisions as evidence. "When I see a bubble, I buy that bubble, because that's how I make money," Soros says. - MoneyNews
Dominant Social Theme: Stop fooling around! Take real action – nationalize something.
Free-Market Analysis: We found the article, excerpted above, fascinating. We did not find it so because Soros advocates US bank nationalization (of a sort), however, but because in it Soros reveals – inadvertently or not – what we have always known (but could not always convince others of), that he is at heart a free-market, Austrian-based economist. At least he is from an investment/strategy standpoint.
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