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.