Soros: Economy 'Worst Since Geat Depression', Warns World Markets Will Fall Again

[Purveyor]

Billionaire investor George Soros said the financial crisis is the worst since the Great Depression and the markets will fall once more this year after a brief rebound, it was reported today.

'We had a good bottom,' Soros told Bloomberg News, referring to Wall Street's rally following JPMorgan Chase's deal to buy beleaguered Bear Stearns.

'This will probably not prove to be the final bottom,' he predicted, adding the rebound may last anywhere from six weeks to three months as the US moves closer to a recession.

Soros said he recommends the creation of an exchange with a sound capital structure and strict margin requirements, where current and future contracts could be traded.

He also said banks must control their own borrowing and curtail lending to clients such as hedge funds by demanding greater collateral and margin requirements on loans.

His words re-state the warning he gave in January, in an article in the Financial Times.

Then, he said that although the financial crisis resembles other crises since the end of the second world war, 'There is a profound difference: the current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency.

---EOE---

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=437212&in_page_id=3&position=moretopstories

[El Pinko]

1. Not exactly a bold prediction...

I doubt anyone thinks we've seen a real bottom. In fact this prediction isn't even all that pessimistic considering what is happening with the credit markets.

[Javaman]

2. since the great "surge" the other day, it hasn't had a plus day yet. nt

[aquart]

3. Possibly worse, because we don't have a manufacturing base anymore.

Thanks, Ronald Reagan, for offshoring our steel industry, and worse, our tool and die industry. Is there anyone here who knows what that means?

[pansypoo53219]

4. housing far more widespread

than the dot com bubble.

WHEEEEEEEEEEEEEEeeeeeeeeeeeeeeeeeeeeeeeeeee. would you like to buy a tulip?