Soros from Davos

Soros is making a couple of comments. Nothing too revolutionary but from a trading perspective I always like to know what he thinks. Here are some quotes.

"Greenspan lost credibility with me when he became too political," Soros, 74, said in an interview today at the World Economic Forum in Davos, Switzerland. "He tried to push interest rates further down in order to help the re-election campaign, and also reached out beyond his sphere of competence by advocating tax cuts which then led to the current deficit."

Soros said he expected the U.S. currency to extend its three-year slide as officials and executives from the U.S., Europe and Asia at Davos blamed the U.S. budget and current account deficits for causing a plunge in the dollar. Microsoft Corp. Chairman Bill Gates, the world's richest man, said yesterday that he's betting on a further slide in the dollar, calling the deficits "scary."

He also had this to say about the yuan:

Financier George Soros warned that China should not be forced by other countries into taking action to allow its currency to find its own level of foreign currency markets.

Speaking at the World Economic Forum's annual meeting here, Soros said: 'China is in a good position to do something about the renmimbi, and I think they are probably going to do it, but I don't think it would be a good idea to push them into it.'

'I think it would be good policy now for them to do something about the exchange rate and widen the band, which would mean effectively some revaluation, and also perhaps go to a currency basket instead of the dollar.'