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Soros Blasts 'Haphazard' Bailout

Billionaire calls for radical next phase to stave off Depression

By Rob Quinn, Newser Staff

Posted Jan 20, 2009 2:17 AM CST

(Newser) – The first bailout was bungled and the new $850 billion stimulus package under consideration will help keep social services ticking but won't be enough to save the slumping economy, billionaire philanthropist George Soros warned the US Conference of Mayors yesterday. He slammed the "haphazard" handling of the initial stimulus package and said it had "poisoned the well" for future efforts by creating "tremendous ill will toward putting up more money," reports Reuters.

Soros warned that "radical" measures would be needed to prevent another Great Depression. He called for the government to recapitalize banks, which would likely require $700 billion alone, and to write down national debt. To prevent the credit market from collapsing, the government must create more cash, then rapidly yank it out of the system the instant inflation emerges, Soros said.

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George Soros says the "haphazard and capricious" use of bailout funds is going to make it difficult for the government to secure more cash to prop up the financial system. (AP Photo/Kevin Wolf)

George Soros has warned that more radical action is needed to stave off another Great Depression. (AP Photo/Virginia Mayo, File)

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The economies of the world are falling off a cliff. This is a situation that is comparable to the 1930s. And once you recognize it, you have to recognize the size of the problem is much bigger. - George Soros

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COMMENTS

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Showing 2 of 2 comments

Guest

Jan 28, 2009 3:47 AM CST

Why are we listening to the people who helped create the banking and investment debacles? If the private banks can't do the job, is a public bank so bad?

lindamae

Jan 20, 2009 2:40 AM CST

This is the man who broke the bank in England, messed with the Thai economy, and was ready to be arrested in France from his wheeling and dealing. I don't trust anything he says. His excuse for working with the Nazis - somebody was going to make money on their destruction of the Jews and it might as well be him - still scares me. His foundation supports at least 30 different agencies with whom I have issues. I wonder what his involvement has been is this travesty.

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Politics • Money

George Soros • economic stimulus package • bailout • Troubled Asset Relief Program • financial crisis • TARP

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Soros Blasts 'Haphazard' Bailout