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Soros: BHO Should’ve Taken Over Banks

From CNN and the Wall Street Journal:

Soros Criticizes Obama’s Bailouts

By Luca Di Leo

MARCH 1, 2010

WASHINGTON—Billionaire investor George Soros, who helped U.S. President Barack Obama raise money for his presidential campaign in 2008, said Sunday he wasn’t happy with Mr. Obama’s handling of the financial crisis.

Mr. Soros said the government should have taken over U.S. banks instead of bailing them out, a move he suggested would have been more popular with Americans.

Mr. Soros is thinking of Central or South Americans, maybe Venezuela.

Though, actually, nationalizing banks isn’t even all that popular down there.

"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," Mr. Soros said in an interview with CNN. "He should have compulsorily replaced the capital that was lost."

After taking office at the start of 2009, Mr. Obama stuck to plans implemented by his predecessor George W. Bush to rescue banks by buying toxic assets from them and injecting capital into struggling lenders.

As the financial sector recovered, the Obama administration put banks through stress tests to determine how much new capital they would need to withstand a severe recession, but steered clear of nationalizing them.

Did Mr. Obama really have a choice? Wasn’t the TARP bailout legislation?

Granted, Mr. Obama has done his best to avoid using the TARP money for the ways it was meant to be used.

Mr. Soros said China took a better approach to dealing with the financial crisis by forcing its banks to increase their minimum capital requirements. He suggested that Beijing has in recent years been more successful in its handling of economic policy than the U.S.

Naturally, Mr. Soros would believe that the Chi-com command economy is the better way.

He said the "market fundamentalist" belief prevailing in the U.S. that markets correct their own excesses was wrong, and criticized former Federal Reserve Chairman Alan Greenspan for taking that line. Mr. Soros — who as chairman of Soros Fund Management, said he manages about $27 billion in assets — cited his own investment decisions as an example.

"When I see a bubble, I buy that bubble, because that’s how I make money," he said.

Mr. Soros doubled his bet on gold at the end of 2009 as prices for the metal rose, a filing showed this month, a few weeks after Mr. Soros called gold the new asset bubble.

Mr. Soros said the U.S. and China needed to work closely to manage the global economy, calling recent signs of bilateral tension worrying.

Mr. Soros simply hates capitalism.

The two countries disagreed over how to tackle global warming during a meeting in Copenhagen recently, and have faced off over trade and currency issues. Mr. Obama met with Tibet’s exiled spiritual leader the Dalai Lama of Tibet in the White House this month, despite official protests from China.

"Unless we stop it in the next few months, I think that we could yet fall back into a situation that prevailed in the 1930s, where each country is for itself," Mr. Soros said. He said trade protectionism was his top concern, in terms of the global economy’s outlook.

Turning to Europe, Mr. Soros said worries about Greece’s debt had exposed a flaw in the euro’s construction, namely that the 15 euro zone countries, which share a single currency, had a common central bank but not a common Treasury.

"Either Europe now takes the institutional measures that are needed to make up for the deficiency or, in fact, it may not survive," said Mr. Soros. Soros Fund Management is one of several heavyweight hedge funds that are betting that the Greek-debt woes will push the euro lower.

In what he suggested was an encouraging step in the U.S. , Mr. Soros said Mr. Obama appeared to be taking a tougher political stance on issues, especially health care, after the Democrats lost a key Senate seat in January.

Republican Scott Brown won the Massachusetts special election to replace the late Sen. Edward Kennedy, in an upset win that cost the Senate Democrats their 60-vote supermajority and threw into question their ability to pass a sweeping health-care overhaul.

Mr. Obama unveiled a $950 billion health-care overhaul plan earlier this month, laying the groundwork for his party to try to push legislation through Congress without Republican support

"I think he got the message in Massachusetts," Mr. Soros said.

So Mr. Soros thinks the message is to ignore the wishes of the American people?

Why are we not surprised?

Meanwhile, we are still wondering why Mr. Soros has not been extradited to France, where he should be spending his golden years in a jail cell.

This article was posted by Steve on Sunday, February 28th, 2010. Comments are currently closed.

7 Responses to “Soros: BHO Should’ve Taken Over Banks”

  1. Doesn’t Soros make money in great and wonderful amounts when the world economies tank?

    Sometimes I wonder if he doesn’t mix up what he views as the “truth” in hopes of furthering such ends.

  2. proreason says:

    The man behind the curtain pops out for his semi-annual pleasure trip to rub the world’s face in his perfidy.

    There are only two living people evil enough to inspire the wish that they might leave the earth at once.

    Mr Soros and the excretable Drooling Barney Franks.

    Wouldn’t it be wonderful to see them thrown into a bottomless cesspool with a one-man kayak and a club, and the more honorable Charles Manson.

  3. tranquil.night says:

    Well Mr. Soros seems to be very well aware that government breaks everything it touches, as it’s his main source of revenue. Bank nationalization would’ve been bold in hindsight and might’ve kept the clamp-down on information, but would’ve just been a downright insane overreach even by the golden era of Obama standards. In my opinion, this is just a lash-out because Soros knows he’s finished. The prints are all over the scene, the inquiries will come once the rest of the crooks are kicked out of Washington.

  4. Mithrandir says:

    I have no idea how liberals can justify having wealthy liberals in their ranks. Doesn’t that fly in opposition to their “share the wealth” ideology?

    If you do a little investigating in your city, you will find that white liberals don’t live anywhere near minority communities. I wonder when black people will figure them out that their mouth says one thing, but their actions and their heart do another. As long as white liberals can keep tricking the black folks to vote for small promises, they will keep supporting each other.

  5. BillK says:

    Wow – I’m agreeing with George Soros?

    He suggested that Beijing has in recent years been more successful in its handling of economic policy than the U.S.

    I agree wholeheartedly, simply because in recent years Beijing has been more pro-business than the United States, especially since the election of BHO.

    Sad, but IMHO true.

  6. Liberals Demise says:

    It was my belief that he set us up for failure……….and now dingleBarry has blown it.
    Will Jorge ever forgive the blunder?

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