Saturday, February 21, 2009

Soros:Crisis Worse Than Great Depression

George Soros is often referred to as one of smartest investors in the world. His ties to politics always make me question what he means a bit, but this time, I think he's being clear.

Renowned investor George Soros said on Friday the world financial system
has effectively disintegrated, adding that there is yet no prospect of a
near-term resolution to the crisis. Soros said the turbulence is actually
more severe than during the Great Depression, comparing the current situation to
the demise of the Soviet Union. He said the bankruptcy of Lehman Brothers
in September marked a turning point in the functioning of the market
system. "We witnessed the collapse of the financial system," Soros said at
a Columbia University dinner. "It was placed on life support, and it's still on
life support. There's no sign that we are anywhere near a bottom."

Then again, the Obama camp is working on lowering expectations and this kind of talk helps their cause. If people get scared, they are more likely to go along with things like the economic stimulus bill. And when we pull out of this slump, they will end up looking better.

Anyways, these are some serious words from someone who knows what he's doing. We'll see what plans Geithner and Co. come up with this weekend.

Article via Reuters.

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