The Germans are making "a tragic, historical mistake," says George Soros of the country's...


The Germans are making "a tragic, historical mistake," says George Soros of the country's refusal to offer something like a Marshall Plan to its troubled neighbors. In an outstanding interview, Soros stands much of the conventional wisdom regarding the crisis on its head. "(Merkel) is trapped (realizing) the euro is not working, but she cannot change the narrative she has created."
Comments (12)
  • wyostocks
    , contributor
    Comments (9114) | Send Message
     
    He must have some huge positions that are in deep do-do.
    26 Jun 2012, 04:44 PM Reply Like
  • nasdaq99
    , contributor
    Comments (114) | Send Message
     
    he's a socialist currency trader happily spending somebody else's money. yes, he must be long euro.
    26 Jun 2012, 05:38 PM Reply Like
  • Bear Bait
    , contributor
    Comments (926) | Send Message
     
    Keep a close eye on Europe and it's forced austerity to see what will happen in the US with all austerity and no stimulus. It don't work! It's like not feeding the Goose that lays the golden eggs in order to reduces costs.
    26 Jun 2012, 05:47 PM Reply Like
  • wyostocks
    , contributor
    Comments (9114) | Send Message
     
    bear
    Ever been broke?
    Ever lost a job and had no income?

     

    If yes to either, did you continuue to spend money like before and make believe your income had not changed?
    26 Jun 2012, 06:13 PM Reply Like
  • Bear Bait
    , contributor
    Comments (926) | Send Message
     
    You asked the wrong man that question big boy.... I was laid off for 3 years in the late 80s. I was so poor I couldn't even afford a can of soda, which was about 30 cents back then. And what did I do. I reduced my spending and then my wife and I did everything we could to increase our income. I worked at every job I could find. I even ran the Ferris wheel at the local fair quite a step down for a college grad. And don't try to pin a liberal Democrat tag on me either. I have voted for every Republican President since Richard Nixon. The radical ultra conservatives that are running the party today are wrong. The best way to restore this country is to cut spending and increase revenues and not just to cut spending. Just spending cuts will no more work for this country than it would have worked for me!
    26 Jun 2012, 07:06 PM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    I never thought I'd find myself defending George Soros, but he's right on this one.

     

    If the Germans want a surviving EU union, then, they must get off their impossible position regarding the powers of centralized government and funding of same. Germany wants miserly behavior by everybody else, when its own success since the union is totally a function of the added commerce it enjoyed from imports by EU countries for which it provided the debt.

     

    Now, they can pick up their toys and go home, sure. But, that's the choice they face: either provide an assistance plan to troubled countries and add further to the federal powers of the EU, or go back to d-marks. There is absolutely no defensible middle ground.

     

    I had just posted another related comment on this subject: http://seekingalpha.co...
    26 Jun 2012, 06:29 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Tack, I believe it is mathematically impossible at this point for Greece to pay back its debts....Spain likely to follow. So, if Germany does provide assistance, what is the point? They can pour more money into the abyss, but if Greece is finally going to default anyways, isn't it better to do it now?

     

    P.S.
    I also agree with the person above who said Soros obviously has some long positions that are in the red right now!
    26 Jun 2012, 06:38 PM Reply Like
  • OutandBack
    , contributor
    Comments (74) | Send Message
     
    Maybe Merkel has access to numbers the rest of us don't.
    Germany might not have the means to save the EU.
    So she holds her position and hopes no one else figures it out.
    27 Jun 2012, 10:56 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    id:

     

    Sovereign and bank balance sheets can be recapitalized in any number of ways by a willing central government. The very same argument could have been made that the U.S. and its banks "must" default, so shouldn't we have just allowed the entire financial system to collapse? (I realize that for some diehards the answer to that remains unclear.)

     

    Germany must decide something utterly fundamental to federal rule. Either a centralized federal government is empowered to make decisions on the currency and issuance of debt, or the EU is over, simple as that. It cannot proceed, as is, any more than if Washington could not generate any debt or currency unless the State of California approved.

     

    An "Articles of Confederation" Europe cannot stand. They either move to a new "Constitution," as we did, or they unwind this union, or the market will do it for them.
    26 Jun 2012, 06:47 PM Reply Like
  • Bear Bait
    , contributor
    Comments (926) | Send Message
     
    I agree with Tack. To use and old and I know very trite saying , Germany wants their cake and eat it too!
    26 Jun 2012, 07:11 PM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    If Socialist Soros has a problem with it, then it's probably good
    26 Jun 2012, 06:50 PM Reply Like
  • kingsmill
    , contributor
    Comments (156) | Send Message
     
    I liked the op ed in this morning's NYTimes suggesting that Germany leave the euro letting the currency find a true level more in keeping with the economies and policies of the other social democracies of Europe. Oh right! Germany might then have to deal with the problems an over valued currency would cause for their exports. On the other hand vacations in the the Greek isles would be even cheaper.
    27 Jun 2012, 11:29 AM Reply Like
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