Monday, January 9, 2012

We are in a much more dangerous situation than 2008: George Soros


He warned that financial markets have grown too big and too powerful in the world.

The world economy is in a much more dangerous situation than 2008, says George Soros, the famous American hedge fund manager and founder and adviser of the Quantum Fund. He is in India and was speaking at the Wipro Foundation in Bangalore on Monday.

He said that the Eurozone crisis is a much more serious one than the housing market crisis in US in 2008 and is a direct consequence of the US slowdown. “This crisis reveals the weaknesses in the formation of the Euro,” he said.

The crisis primarily hitting Europe but can also impact the US, he felt.

He said that the growth rate in the developed world would decline going forward and stay positive in the developing world.

He thought India was a fascinating country and increasingly important in the world.

“I am long term optimistic about India,” Soros said.

He warned that financial markets have grown too big and too powerful in the world.

“Regulation in the banking industry has not been very successful,” he added.