Courtesy of Courtney Comstock at The Business Insider
George Soros just said on CNBC that "I think we are in a [double dip] already" in the U.S.
And if we don’t create more jobs?
We will have even more of a slowdown and a double dip, he says.
Soros put the slow growth in the U.S. in the context of the Euro crisis, which he says is a liquidity issue.
He explained that what’s happening in Europe is a situation that’s "more dangerous" than Lehman. However the authorities will do whatever it takes to keep the system together. "Because the alternative is just too terrible to contemplate."
What could happen: 2 or 3 of the smaller countries could default and leave the Euro, provided its preprared in an orderly way. If it were unpreprared, it could disrupt the global financial system.
But the climax won’t come in September, he says, because "they’re not prepared for it."
"They have to create this EFSF," says Soros, "whatever that stands for, it’s a potential for European Treasuries, but it’s not yet in existence yet. So they want to bring it in."
The implications for Greece: "By December, if Greece hasn’t delivered by that time, they won’t get the next tranche," predicts Soros.
