For the last 25 years, American consumers spent more than they saved, fueling the motor of the world economy.
Now that motor has stopped, according to Soros Fund chief George Soros.
Soros specifies three things the U.S. government must do now to resolve the financial crisis and get the world economy motor going again: Deal with the mortgage problem, reduce foreclosures, and recapitalize the banks.
"We are determined to put the money in, not to allow the financial system to collapse," Soros said in a PBS interview.
He believes the federal government has made the financial crisis much worse by waiting so long to act.
"Because we are behind the curve, the amounts get bigger and bigger."
Soros thinks that the problem of global warming provides an opportunity for economic recovery.
"I think that dealing with global warming will require a lot of investment. It could be the motor of the world economy in the years to come," Soros said.
"You need a new motor, and we have a big problem: Global warming. It requires big investment, and that could be the motor of the world economy in the years to come," Soros said in a PBS interview.
German Deputy Environmental Minister Astrid Klug agrees with Soros.
She says the world's economic problems are threatening current negotiations on new rules for slowing global warming and adopting cleaner technologies, decisions that she believes could create millions of jobs.
"We have to make sure that the financial crisis does not hinder climate-change efforts," Klug says.
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