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April 08, 2009
US Recovery Is Far Off, Banks Are 'Basically Insolvent': Soros
US Recovery Is Far Off, Banks Are 'Basically Insolvent': Soros
The U.S. economy is in for a "lasting slowdown" and could face a Japan-style period of relatively low growth coupled with high inflation, billionaire investor George Soros said on Monday.
Soros, speaking to Reuters Financial Television, also warned that rescuing U.S. banks could turn them into "zombies" that draw the lifeblood of the economy, prolonging the economic slowdown.
"I don't expect the U.S. economy to recover in the third or fourth quarter so I think we are in for a pretty lasting slowdown," Soros said, adding that in 2010 there might be "something" in terms of U.S. growth.
Soros' view contrasts with the majority of economists, who expect the U.S. economy to stop contracting in the third quarter and resume growing in the fourth quarter, according to the latest monthly poll of forecasts conducted by Reuters.
The recovery will look like "an inverted square root sign," Soros said. "You hit bottom and you automatically rebound some, but then you don't come out of it in a V-shape recovery or anything like that. You settle down—step down."
The healing of the banking system and housing markets is crucial to recovery. "The banking system, as a whole, is basically insolvent," Soros said.
What's more, the Treasury's Public-Private Investment Fund is going to work but it won't be enough to recapitalize the banks in a way that they are able to or willing to provide credit.
"What we have created now is a situation where the banks who will be able to earn their way out of a hole, but by doing that, they are going to weigh on the economy," he said. "Instead of stimulating the economy, they will draw the lifeblood, so to speak, of profits away from the real economy in order to keep themselves alive. This is the zombie bank situation."
Exactly one year ago, he told Reuters that global losses are likely to top $1 trillion from the credit crisis. To date, U.S. and European banks have recorded more than $700 billion in losses and write-downs, as of Feb. 5. 2009, according to Reuters data.
Soros also said the U.S. dollar is under selling pressure and may eventually be replaced as a world reserve currency, possibly by the IMF's Special Drawing Rights, a synthetic currency basket comprised of dollars, euros, yen and sterling.
"I think the dollar is now under question and I think the system will need to be reformed, so that the United States will be subject to the same discipline as is imposed on other countries," said Soros, whose famous bet against the British pound earned his Quantum Fund $1 billion in 1992.
Wild Thing's ciomment.......
This jerk Soros is loving every second of this and what is being done to our country by Obama. Soros and his crowd of commies are responsible for the financial and economic mess of the world!
The other day on Fox Business Network, and I am so sorry I did not get the name of the man that was speaking. He said that IF Obama would leave the economy alnoe, stop spending right now, that America would survivie and get back on her feet. BUT if he keeps doing things the way things he has been doing, in 8 to 10 years we will have a 23 Trillion debt and there willl be no way to ever recover.
I wish there was some way to convince Obama, the media and their kool -aid people that this has got to STOP NOW!
If I can find the video or transcript I will add it to this.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at April 8, 2009 06:47 AM
Comments
Is it my imagination? Or does Soros look like Rodney Dangerfield?
Posted by: Steve Gaston at April 8, 2009 08:12 AM
Missed another head shot!!!
Posted by: Jack at April 8, 2009 10:50 AM
I wish this bastard would stroke out.
Posted by: TomR at April 8, 2009 11:36 AM
The gentleman on Fox News is correct. The recovery point is around a National debt of 23 Trillion dollars. But even at that level we would have no room for emergancies.
Posted by: Avitar at April 8, 2009 06:03 PM
Steve Gaston, LOL yes he sure does.
Posted by: Wild Thing at April 8, 2009 07:52 PM
Jack, hahaha what is it they say he
has a face only a mother would love.
In his case I doubt that, he is so
evil he could not have had a mother
he has to be from some clone
experiment that went wrong. heh heh
Posted by: Wild Thing at April 8, 2009 07:56 PM
Tom,I do too. He is really is an evil man.
Posted by: Wild Thing at April 8, 2009 11:36 PM
Avitar, thank you, I appreciate it.
I should have written the mans name
down. Thanks again.
Posted by: Wild Thing at April 8, 2009 11:38 PM
