Soros: Collapse of Financial System "Real" and "Far From Over"
Billionaire investor George Soros, who earned his fame in the ’90s when he made $1 billion betting against the pound, has just leveled criticism against the entire financial system. Today, at a conference in Vienna, he vividly described the global economy going down, driven by vast government deficits.
According to Bloomberg:
“’The collapse of the financial system as we know it is real, and the crisis is far from over,’ Soros said today at a conference in Vienna. ‘Indeed, we have just entered Act II of the drama.’ Soros, 79, said the current situation in the world economy is “eerily” reminiscent of the 1930s with governments under pressure to narrow their budget deficits at a time when the economic recovery is weak.
“Concern that Europe’s sovereign-debt crisis may spread sent the euro to a four-year low against the dollar on June 7 and has wiped out more than $4 trillion from global stock markets this year. Europe’s debt-ridden nations have to raise almost 2 trillion euros ($2.4 trillion) within the next three years to refinance, according to Bank of America Corp.
“’When the financial markets started losing confidence in the credibility of sovereign debt, Greece and the euro have taken center stage, but the effects are liable to be felt worldwide,’ Soros said.”
Soros is echoing the same sentiment The Daily Reckoning is regularly driving home. Global governments have binged on fiscal and monetary policy efforts aimed at manipulating the market and are now tapped out. There’s no more fuel left to throw on the fire and the bull market embers are smoldering. We’re in for a bumpy ride.
You can find more details in Bloomberg’s coverage of Soros on entering “Act II” of financial crisis.