George Soros Loses Confidence in Euro Authorities, Warns of Looming Financial Meltdown

Last week, George Soros had faith in the ability of Euro authorities to deal with the financial crisis. But after a Saturday interview with CNN, it would appear that he now agrees with Scottish fund manager Hugh Hendry, who said that politicians have all but lost the ability to resolve the European financial crisis.

He explained on CNBC last Wednesday that the situation in Europe is far "more dangerous" than the Lehman debacle of 2008.

He told the CNBC interviewer that the best way for Europe to avoid a total financial meltdown would be for them to allow 2 or 3 of the smaller countries to default and then exit the Euro in an orderly fashion. If it were disorderly and unprepared, it could disrupt the global financial system, says Business Insider.

He confidently held that European authorities would do whatever it takes to keep the system together. "Because the alternative is just too terrible to contemplate," Soros said.

Watch CNBC Interview:

However, later that week on CNN, Soros said that the euro zone’s failing to resolve the sovereign debt crisis in Europe would lead to a "real meltdown" of the global financial system, reports Business Insider.

The interview signaled his loss of confidence in the authorities to effectively deal with the situation.

"This time it can't be stopped because you don't have the authorities to stop it,” Soros said in reference to the Lehman disaster.

He later went on to say Euro leaders must convince voters to help the troubled euro area nations overcome their money problems, because "the alternative is a breakdown of the global financial system, a real meltdown."

"They have to create this EFSF [The European Financial Stability Facility]," said 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 the U.S. are not good. "We are in a [double dip] already" he said on CNBC last week.

Soros also went on to say that if the U.S. does not create more jobs soon, Americans will suffer even more of a slowdown and a double dip.

The implications for Greece: "By December, if Greece hasn't delivered by that time, they won't get the next tranche," predicts Soros.

You can read his interview with CNN here.