George Soros: Zombie Banks Are Drawing The Lifeblood Of Economic Activity

Tue, 7 Apr 2009

***Note: Due to the popularity of the first George Soros video I've posted, I have decided to post the rest of the videos from the same interview he did with Yahoo! Finance.***

This is Part 1 of the four part series.

George Soros, legendary currency trader and chairman of Soros Fund Management, talks about the U.S. financial crisis and actions taken by the global governing authorities in response to the crisis. He also shares his perspectives on the dire state of "zombie banks" and on the unsustainability of the current bear market rally.

"We did not succeed in recapitalizing the banks, to the point where they can lend freely to business[es]. They still have to earn their way out of the hole. And that is going to last a long time," says Soros, referring to the root cause of the current crisis which U.S. policymakers have failed to fix. When asked to clarify if he is saying that the steps taken by policymakers so far have not been the right ones to fix the banking system, Soros responds, "That's right. It (The banking crisis) will linger, because we're keeping the banks alive. This talk of 'zombie banks'. Unfortunately, that is where we are now. The banks are alive, but they know that they've got assets which are depreciating and they have to charge extra. So actually, instead of providing lifeblood of credit, they're effectively drawing the lifeblood of [economic] activity, of profit, to themselves, to dig themselves out of the hole and that is the current situation."

Watch Part 2 - "George Soros: Dollar's Strength Is A Measure Of System's Sickness'" here:
http://www.youtube.com/watch?v=ZCnoJgapsTM

Watch Part 3 - "George Soros Predicts Stagflation" here:
http://www.youtube.com/watch?v=mHV0KBtOnXs

Watch Part 4 here:
[Coming Soon]

Category:

News & Politics

Tags:

• stagflation
• inflation
• stagnation
• deflation
• depression
• recession
• economy
• financial
• GDP
• CPI
• PPI
• economics
• gold
• silver
• oil
• dollar
• money
• supply
• monetary
• base
• Federal
• Reserve
• George
• Soros
• zombie
• banks

[salz83]

Peter Schiff had predicted everything.

[DJCW]

1. They DID succeed in re-capitalisation. That's what the government bailouts was for, this was overt centralisation of power.

2. Who are the authorities Soros is talking about, and why is it their say so when the economy will recover.

3. The Inverted square root sign, basically translated means, " Trillions of Dollars has disappeared" "America will repay them loans, plus the interest we set on the fiat money that, ahem... vanished down a "black hole"

[anolmec]

Soros say's " We did not succeed to recapitalize the banks to the point they can lend freely". Maybe this brainiac should consider the reason the banks are not lending freely to one another is because they dont trust each other and the reason they dont trust each other is because they are untrustworthy. capital has nothing to do with it.

[jeremydtx]

what is up with all this funny money? If i want a loaf of bread, i agree to mow your lawn. if i want fresh eggs, i give you milk from my cow. if i want fine dining ---- i will be your slave for 3 years?! credit markets are a scam. wake up people! you don't owe your creditors anything after you pay off the principle. interest is a scam - and prohibited by the OT.

[largo2001]

thanks for posting.

[unworldlything]

Soros=motherfucking cocksucker