In an interview with Yahoo! Finance, Soros praises the presidentâ€™s monstrous $3.6 trillionÂ fiscal 2010 budget blueprint, absurdly calling it â€œvery courageous,â€ but chastises the administration for not nationalizing the banks altogether. (A video of the interview is available at the above link.)
Here are some highlights from the article accompanying the video:
But President Obama â€œlost a great opportunityâ€ by not taking a more radical approach in dealing with the banks, Soros says. â€œThereâ€™s too much continuity with the bumbling and mishandling by the previous administration. Not enough discontinuity.â€
Specifically, Soros wanted Obama to â€œcome out of the gate with a well considered planâ€ 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. â€œThe nature of far from equilibrium situations is that public understanding is always lagging behind events. If youâ€™re guided by desire to have consensus, youâ€™ll always be a little bit slow.â€
Essentially, Soros believes we should be following the so-called Swedish solution but fears we are heading down the same policy path as Japan. â€œWeâ€™re effectively keeping zombie banks alive,â€ he says.
To those who rail about the dangers of nationalizing banks, Soros says: â€œYou 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.â€ [...]
About the onlyÂ true words that might have escaped Sorosâ€™s lips were contained in his observationÂ that â€œAmerican over-consumption cannot be the motor of the world economy.â€
Of course everyone will have to learn toÂ live within his or her means, and just maybe, now that American businesses and the AmericanÂ people are being forced to cut back, one day the bloated Obama administration will have to follow suit.