2010年12月21日星期二

Soros: Solving the debt crisis in Europe are required to recapitalize banks sooner rather than later

Financial predators George - George Soros today that the EU institutions are facing not only a currency crisis or a banking crisis and the crisis of macroeconomic theory. Solve the debt crisis must be European capital injections into banks, and sooner rather than later.

Today, George Soros has written that the financial crisis, with hindsight, the euro is not aware of the existence of some of its founders weaknesses. The euro should have intensive economic effect, but it in turn resulted in the current fragmented situation.

Soros said that the consequences of lack of common stocks in 2008 after the bankruptcy of Lehman Brothers first appeared, in addition, there were other weaknesses in the euro, and the relevant agencies seem not to recognize this. "In fact, not only the EU institutions are facing a currency crisis or a banking crisis and macroeconomic theory of the crisis."

The present situation shows that the EU monetary authorities have committed at least two errors. One is that banks already insolvent, taxpayers have to pay to protect the interests of holders of bank shares, which is politically impossible for anyone to accept.

Soros sharply pointed out: "For this reason, the new elected next spring, the Irish government is bound to overthrow the current solution. The market has long been aware of this, it is Ireland's rescue plan to solve the problem causes delays in . "

For the bank's insolvency problem, Soros said, "the EU should use the emergency relief fund to inject liquidity into the banking system, or as a sovereign state to provide loans. The former means the latter is relatively more effective means, because the bank appropriate external funding into the system can help avoid further deficit State to enable them to resume as soon as possible with the Capital Market. "
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