Soros Backs Plan to Buy Equity in Banks

A: All of the above. Because for the last 25 years, we have basically consumed, 6 to 7 percent a year more than we produced. And the other people, the Chinese, the oil producing countries, have eh, built up a lot of dollar reserves, which they are now going to convert into real assets, so they will be wealthier, and we will have more debt.

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This is what we have to pay for the excesses of the last 25 years, Because, you have to recognize, that eh, this crisis is due, has been generated inside the financial system itself. It isn't something that has been inflicted from some outside source, like a rise in oil prices or whatever.

This is a crisis that comes from the financial system, and the system itself is flawed and it needs to be repaired.

Q: But in terms if us living in a new era, what will that look like, will that mean that my parents, and me and our children will have less walking around money, how is that specially going to look in your mind?

A: Well certainly uh the US consumer uh will cease to be the motor for the world economy. So we will need another motor. And I think that the problems that confront us with regard to energy, global warming, energy dependence, will require very large investments. And I think those investments can replace the consumer as the driving force for the economy in the next few years.

So if we don't deal with those problems you will have large unemployment. But I think that the unemployed resources can be put to good use, if we now confront these pressing problems. Global warming and energy dependence.

Harris: George Soros, thank you very much, thanks again sir, I appreciate it.