Soros Speaks: Eurozone Facing Do or Die SituationJune 25, 2012 @ 9:24 AM EST
Even at age 81, legendary investor George Soros still commands attention when he speaks. Soros is perhaps best known for making over $1 billion in 1992 betting against the pound, forcing the British government to abandon a peg to a basket of European currencies. He is reportedly worth over $20 billion and known more recently for his philanthropic and think tank activities, although still actively involved in managing his family’s fortune.
Soros gave an exclusive interview over the weekend to Bloomberg and essentially said Europe is facing a “do or die” situation in the short-term. He was highly critical of Angela Merkel and Germany from a policy perspective.
According to Bloomberg:
“Billionaire investor George Soros called on Europe to start a fund to buy Italian and Spanish bonds, warning that a failure by leaders meeting this week to produce drastic measures could spell the demise of the currency.
Policy makers should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts. Funding for the purchases would come from the sale of European Treasuries, which would have low yields because they would be backed by each euro member.”
Soros said of Merkel and the upcoming European summit in Brussels:
“Merkel has emerged as a strong leader. Unfortunately, she has been leading Europe in the wrong direction. There is a disagreement on the fiscal side. Unless that is resolved in the next three days, then I am afraid the summit could turn out to be a fiasco. That could actually be fatal.”
David W. (aka The Underground Trader)
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