Soros Backs Plan to Buy Equity in Banks

And those rights to subscribe would be trade-able. So if the shareholders don't have money themselves, they can sell the rights to someone else, who does have the money. And the deal would be attractive enough because if the treasury is willing to buy those shares, then that is probably the cheapest price at which you can buy. So it would attract private capital.

Q: I'm pleased to note that you sound more optimistic right now than you have in recent days when you've said some rather gloomy things. What has changed if anything?

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A: Well I think that the secretary of the treasury has come around, eh, to this view. And I think that also the European governments realize that they have to fix their system. And eh, you know when you go to the brink as we are right now, then something happens to pull you back. Because the alternative of allowing this to continue is so horrendous that even people who don't want any government intervention realize that such intervention IS necessary.

Q: You have been a phenomenally successful investor over the years. As you look out at the stock market right now, do you see bargains out there? Is now the time to buy?

A: Well you know I don't want to give people advice, eh, I think people have to make up their own minds. But certainly you are now in a period, of lets say, give up. And at times like this there are bargains. But unless the government does the right things, eh, then things could still go wrong.

And in any case, the real economy is now going to enter into eh, quite serious recession. But if you do the right things, then you could see how you could come out of that recession.

You could see across the valley. And when you can see across the valley, then usually financial markets do it, and you find that at the time of recession, actually, stock markets tend to go up, rather than go down.

Q: I've heard you say recently that we're entering into a new and more difficult era What do you mean by that? That the United States will have less power in the world, and also perhaps that American citizens will have less money in their pocket?