ID :
24323
Tue, 10/14/2008 - 14:45
Auther :
Shortlink :
http://m.oananews.org//node/24323
The shortlink copeid
Soros backs U.S.' rescue plan, says recession on the way
New York, Oct 13 (PTI) Billionaire investor and entrepreneur George Soros backed America's plan to buy equity in banks but forecast a 'quite serious recession' on the way.
The real economy, he said, is now going to enter into
quite serious recession, "But if you do the right things,
then you could see how you could come out of that recession.
In an interview with A.B.C. News, he agreed that the
United States would have less power in the world and perhaps
American citizens would have less money in the pocket as a
result of the crisis.
In the last 25 years, Soros said Americans have basically
consumed six to seven per cent a year more than they have
produced.
As a result, he said, "Other people, the Chinese, the oil
producing countries have built up a dollar reserve which they
are now going to covert in real assets. So they become
wealthier and we will have more debt," he added.
The U.S. consumer, would cease to be the motor for world
economy.
"So we will need another motor. And I think that problems
that confront with regard to energy, global warming, energy
dependence will require very large investments. Those will
replace the consumer as the driving force for the economy in
the next few years," he told the interviewer.
If these problems are not confronted, there would be
large unemployment, he said, adding that human resources can
be put to good use if the country now confronts these pressing
problems.
The country, would have to pay for excesses of the last
25 years because the current crisis has been generated inside
the financial system, he said.
"It is not something that has been inflicted from some
outside source, like a rise in the oil prices. This is a
crisis that comes from the financial system and the system
itself is flawed and needs to be repaired," he added.
Replying to a question about the measures announced by
Washington to tackle the crisis, Soros said a lot of time and
altitude has been lost.
"But if they announce a coherent plan now and if they act
and I think they need to take action of Morgan Stanley right
away, then the market will stabilize and they will have time
to implement the scheme," he added.
Asked if the worst of the crisis is over, he told the
channel that it is a good chance that Friday low was a 'good
bottom' if a number of things are done including
recapitalising the banks, something about housing market,
reforming mortgage system and reducing foreclosures.
"You will, of course, have repercussions in the real
economy but at least the financial system which has been
source of trouble will begin to heal," Soros added.
Asked if he would advise people to buy the stocks at this
time, he replied it is for them to make up their mind.
"But certainly you are now in a period, of lets say, give
up. And at times like this there are bargains. But unless the
government does the right things, then things could still go
wrong." PTI DS
RKM
The real economy, he said, is now going to enter into
quite serious recession, "But if you do the right things,
then you could see how you could come out of that recession.
In an interview with A.B.C. News, he agreed that the
United States would have less power in the world and perhaps
American citizens would have less money in the pocket as a
result of the crisis.
In the last 25 years, Soros said Americans have basically
consumed six to seven per cent a year more than they have
produced.
As a result, he said, "Other people, the Chinese, the oil
producing countries have built up a dollar reserve which they
are now going to covert in real assets. So they become
wealthier and we will have more debt," he added.
The U.S. consumer, would cease to be the motor for world
economy.
"So we will need another motor. And I think that problems
that confront with regard to energy, global warming, energy
dependence will require very large investments. Those will
replace the consumer as the driving force for the economy in
the next few years," he told the interviewer.
If these problems are not confronted, there would be
large unemployment, he said, adding that human resources can
be put to good use if the country now confronts these pressing
problems.
The country, would have to pay for excesses of the last
25 years because the current crisis has been generated inside
the financial system, he said.
"It is not something that has been inflicted from some
outside source, like a rise in the oil prices. This is a
crisis that comes from the financial system and the system
itself is flawed and needs to be repaired," he added.
Replying to a question about the measures announced by
Washington to tackle the crisis, Soros said a lot of time and
altitude has been lost.
"But if they announce a coherent plan now and if they act
and I think they need to take action of Morgan Stanley right
away, then the market will stabilize and they will have time
to implement the scheme," he added.
Asked if the worst of the crisis is over, he told the
channel that it is a good chance that Friday low was a 'good
bottom' if a number of things are done including
recapitalising the banks, something about housing market,
reforming mortgage system and reducing foreclosures.
"You will, of course, have repercussions in the real
economy but at least the financial system which has been
source of trouble will begin to heal," Soros added.
Asked if he would advise people to buy the stocks at this
time, he replied it is for them to make up their mind.
"But certainly you are now in a period, of lets say, give
up. And at times like this there are bargains. But unless the
government does the right things, then things could still go
wrong." PTI DS
RKM
