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Soros Hits Obama from the Left over Banks

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Posted on April 16 2009 12:03 pm

The preeminent funder of the American left, hedge fund manager George Soros, an early supporter of President Barack Obama, is now hitting Obama from the left.

In an interview with Yahoo! Finance, Soros praises the president’s monstrous $3.6 trillion fiscal 2010 budget blueprint, absurdly calling it “very courageous,” but chastises the administration for not nationalizing the banks altogether. (A video of the interview is available at the above link.)

Perhaps Soros, the most visible member of the secretive Democracy Alliance, isn’t having quite as good a crisis as he lets on.

Here are some highlights from the article accompanying the video:

But President Obama “lost a great opportunity” by not taking a more radical approach in dealing with the banks, Soros says. “There’s too much continuity with the bumbling and mishandling by the previous administration. Not enough discontinuity.”

Specifically, Soros wanted Obama to “come out of the gate with a well considered plan” to recapitalize the banks, rather than continuing with the TARP and related bailouts. But the President may have been hampered by his desire to create consensus, Soros says. “The nature of far from equilibrium situations is that public understanding is always lagging behind events. If you’re guided by desire to have consensus, you’ll always be a little bit slow.”

Essentially, Soros believes we should be following the so-called Swedish solution but fears we are heading down the same policy path as Japan. “We’re effectively keeping zombie banks alive,” he says.

To those who rail about the dangers of nationalizing banks, Soros says: “You have to recapitalize the banks for them to function. As it is, we are nationalizing the debt of the banks, but not the banks themselves.” [...]

About the only true words that might have escaped Soros’s lips were contained in his observation that “American over-consumption cannot be the motor of the world economy.”

Of course everyone will have to learn to live within his or her means, and just maybe, now that American businesses and the American people are being forced to cut back, one day the bloated Obama administration will have to follow suit.

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