His Lips Are Moving

but I can’t hear what he’s saying. George Soros presents his prescription for “preventing a second Great Depression”:

Three bold steps are needed. First, the governments of the eurozone must agree in principle on a new treaty creating a common Treasury for the eurozone. In the meantime, the main banks must be put under European Central Bank direction in return for a temporary guarantee and permanent recapitalisation. The ECB would direct banks to maintain credit lines and outstanding loans, while closely monitoring risks taken for their own accounts. Third, the ECB would enable countries such as Italy and Spain to temporarily refinance themselves within limits at a very low cost. These steps would calm markets and give Europe time to develop a growth strategy, without which the debt problem cannot be solved.

I see how this could block the immediate problem but I don’t see how it resolves the fundamental, structural problems of the euro: a common currency with different, even conflicting fiscal policies. Greece will still need to borrow. German and French banks will still hold too much Greek debt.

I don’t see another practical alternative other than Greece exiting the euro or German taxpayers being willing to backstop Greek spending indefinitely, much as New York taxpayers propped up Tennessee for decades.