Soros: Three steps to avoid a second Great Depression

Hedge fund guru George Soros believes three bold steps need to be undertaken to stave off the threat of the world entering a second great depression.

Writing in the Financial Times, the billionaire investor said eurozone policymakers must push through proposals to create a common treasury for the continent. In the interim, Europe should a establish a new intergovernmental agency that enables the European Central Bank to use the European Financial Stability Facility's funds, Soros said. He also believes Europe's beleaguered banking system needs to be guaranteed and forcibly recapitalised, with the ECB then instructing banks to maintain credit lines and loan portfolios. The chairman of Soros Fund Management said recapitalising Eur...