An interview today on CNBC with George Soros:
Soros: ...when you have unemployed resources, putting
those resources to work the is really the first objective, and -- and you
(have) to re-establish growth for shrinking the debt. And so I think the policy
basically pioneered by Bernanke is actually the right policy.
Bartiromo: You're not worried about the fact that the Federal
Reserve has expanded its balance sheet so much, the ECB expanding its balance
sheet so much? Is there a down side risk there?
Soros: There is a down side risk because once the economy gets
going, then interest rates are going to take a big leap because this is a
delicate two-phase maneuver where first you throw more money at the economy and
as the economy picks up, you have to take that money out.
So,
tell me, do you have confidence that the Fed can do it? Have they successfully
done it before?
