Soros: $1.5 Trillion Needed To Save The Banks

George Soros just wrapped up his presentation at Davos, where he said that the current crisis has the potential to be worse than the 30s and that the banking system still needs $1.5 trillion to be rescued. How will government come up with this cash? Money creation. In other words, some degree of significant inflation is the price to pay to prevent a total banking system collapse.

It sounds like Soros is in favour of the gigantic good bank/bad bank model that’s been floated, and he noted that he personally would prefer to invest in the good bank. Really.

Wire reports should be hitting quickly, but David Schlesinger, editor-in-chief at Reuters live-Twittered the presentation and got the basic details.

As for Soros in 2008. He says he was short the pound (good bet) and that overall he was satisfied with his performance in the year, though nothing else specific.

Telegraph: Mr Soros also suggested that the IMF should use its own international currency – special drawing rights – to pump more cash into the global economy. It would be analogous to printing money – quantitative easing – on a global scale.

Speaking at the World Economic Forum in Davos, Mr Soros also said he would be happy to start investing in the financial sector again provided governments created “good” and “bad” banks by isolating their bad assets.


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