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Current crisis is worst since
Great Depression: Soros
India
Infoline News Service
Thursday, April 3, 2008
The billionaire investor says that global equity
markets will fall more this year after a brief rebound and that
the credit crunch is probably far from over
The current financial crisis across the world is the
worst since the Great Depression and the credit crunch is probably
far from over, according to billionaire investor George Soros.
He also says that global equity markets will fall more this year
after a brief rebound.
The markets have hit a significant but temporary bottom, Soros
was quoted as saying by a leading US business channel. "I
don't think we are halfway through the fallout, because to think
what happens in the financial markets doesn’t affect the
real economy is nonsense," Soros said.
(Article continues below)
In a separate interview to a newswire agency, Soros said it was
a good bottom, referring to the recent spurt in stocks and the
dollar. He added that it will probably not prove to be the final
bottom and that the rebound may last six weeks to three months
as the US inches closer to a recession.
The Federal Reserve has dropped their benchmark interest rate
2% this year to 2.25%, but Soros believes the US central bank
has little head room to cut borrowing costs further, given the
weak dollar. "We are close to the limit," he told the
newswire.
On developing markets, Soros hasn't abandoned his holdings in
India, even with the 22% drop in the benchmark BSE Sensex this
year. "The fundamentals remain good," he said. However,
he is less certain about what will happen to Chinese H shares,
which trade in Hong Kong.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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