The legendary investor George Soros called from Davos to radically reduce the size of banks that are too big to be allowed to fail transmitted BBC. At the World Economic Forum, he spoke in support of U.S. President Barack Obama in his attempts to separate commercial and investment banking. According to him, however, even after such action, most investment banks will still remain too large to fail. To control these banks, all major economies need to rally around strict rules to limit the risk – how much money banks can borrow to invest, “said billionaire. He acknowledges that it will be difficult to determine the exact ceiling on leverage, but that governments have enough time to develop a global regulatory framework. George Soros called the current economic crisis “super bubble” which was created by the system itself, and was the culmination of a series of smaller balloons in the last 25 years, and unsuccessful attempts to remove them. They add balloons were caused by facilitated credit and high financial leverage. As regulators and bankers were wrongly believed that markets are efficient, Soros continued, and were blinded by ideology that they should always be less regulated. And when the bubble burst, governments and regulators to further worsen the situation by reducing interest rates make money cheaper and thus to the mortgage crisis in the United States, which rocked the entire financial system.
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Bill Gates, who is the richest man in the world, said today that the U.S. economy and will take years to recover from the recession ST. Moreover, he added that he expects the taxes in the United States will grow to be able to balance the budget. These forward Reuters, citing an interview, which gave Microsoft co-founder of ABC. Gates also warned about excessive government interference in financial matters and urged the President Barack Obama to focus on longer term goals such as education and prevention of the consequences of the deepest recession since the Great Depression. When such a crisis happens, take years of economics, “to dig up,” said Gates. The budget is already quite razbalansiran and even to return the economy back on the road to rise without changes in tax policy and the holder the right fiscal framework will remain on minus. At any time the financial markets will vzrat in this hole and it can not but cause problems, added technocrats. Microsoft co-founder said that “everyone is confused and difficult to slow economic recovery, but I think there is any magic wand with which the Government to expedite the process”
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