Billionaire warns global boom is over
George Soros the out-spoken billionaire investor, just came out with a very gloomy assessment of the US and world economies.
In an interview with a BBC news editor, Mr. Soros said the "financial bubble" of the last 25 years could be drawing to an end and the post World War II "super-boom" era could also be over. He predicted a "more severe and longer" US slowdown than most people expect. He believes that the central banks should explicitly target asset bubbles such as housing booms and try to stop them getting out of control, which is something they have resisted doing so far.
Soros also said that stock markets are still underestimating the severity and length of the economic downturn, especially in the US, and are now having a "bear market rally".
I agree with Mr. Soros’s assessment and believe those calling for a turnaround in San Diego and other past bubble markets for this year, even with any and all government programs are delusionary. I’m sure they will only have to wait till Spring of 2009 to once again put out the industry line of “it may be a market bottom …get in before the boom created by all the pent-up demand” send price much higher. Actually, this year may go down as one of the largest value declines in San Diego real estate history.
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The downturn during the 1970s was caused primarily by Richard Nixon’s faulty economic policy. Among other things the imposition of widespread wage and price controls caused the extended recession of the 1970s we refer to today as stagflation. Oil prices played a role but it was the governments response that truly put the United States over the edge. Unless the Government takes draconian measures like Nixon did to insulate the economy it doesn’t make sense to compare today’s situation to that of the 1970s.
Tyler
San Diego County Family Dentistry
If I predict recession every year I will get it right eventually.My understanding of economics is that something either goes up or it goes down. There are 50-50 odds to guess right. Some may guess 60% right but will eventually revert back to the mean. Its too bad this is a time when the system has been raped for every nickel and dime for the next few years.
James
San Francisco California Law
Mark these words, it will be much worse that the ‘73-’75 recession, it will very likely be worse than the Great Depression, but will be a depression, a real depression. A morning’s worth of true, overall. thoughtful research will convince anyone willing to face the truth.
Kylie
San Diego California Laser Eye Surgery