Community | February 21, 2009 | 7 comments

Soros sees no bottom for world financial "collapse"

source: http://www.reuters.com/article/businessNews/idUSTRE51K0A920090221?feedType=RSS&feedName=busi...

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http://www.reuters.com/article/businessNews/idUSTRE51K0A920090221?fee...

NEW YORK (Reuters) - 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."

His comments echoed those made earlier at the same conference by Paul Volcker, a former Federal Reserve chairman who is now a top adviser to President Barack Obama.

Volcker said industrial production around the world was declining even more rapidly than in the United States, which is itself under severe strain.

"I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world," Volcker said.
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7 comments // Soros sees no bottom for world financial "collapse"

  • Ihatethemall
    • 0
      Ihatethemall  

    • to start off with, no one ever mentions the fact that many bankers were all but forced to lend money to people that they knew were bad risks to begin with. How many people got loans because the were a minority or poor or whatever the case is they shouldn't have gotten the loans. Acorn was a group that told the banks that they would sue them for not giving out loans to the poor.

      Second, Are people that stupid that they can't read. Did they not know they couldn't afford these loans. When I bought my house in Vegas, I not someone else but I, ME, MYSELF, made a decission on what I ME MYSELF could afford. when I went for my loan I was approved for a loan that was 100,000 more than I wanted to spend or thought I could afford. Was I a stupid ass? NO I wasn't. I didn't let someone talk me into a bigger house or a more expensive house because the bank told me I could get it. I bought what I knew I could afford. The GOV shouldn't have to legislate intelligence. If someone isn't smart enough to know how much they could afford it's their own stiupidity that gets them into the trouble they are in.
      I sold my home 3 years later for a 130,000 profit. That poor slob is probably in a heap of shit right now. The values in Vegas have dropped like a lead ballon. Did he do the right thing and buy what he could afford or buy what the bank told him he could afford. I dont know. Not my problem. When I bought my farm, again, I bought what I could afford, not what the bank told me I could afford. does it really take a rocket scientist to figure that out? apparently it must.

      Thirdly the credit default swaps you are talking about are only being pushed. they aren't required. again that goes to a persons intelligence. if your that stupid well then I guess you learned a lesson didn't you? People "push" stuff all the time. that doesnt mean that you have to take what is being "pushed"

      Last but not least, I don't really care any more who's at fault. This country needs to do a little house cleaning to rid it self of the stupid weak and lazy and however that happens, so be it. I can survive either way. My Farm is near paid for. Thanks to the stupidity of the guy that bought my house in Vegas.

    • 4 years ago
  • carmalite
    • 0
      carmalite  
    • Ihatethemall:

      I hate the Mall,

      You really are not up on what happened in the economy as you are picking and choosing about the loans. 80 percent of the loans were made by the major banks, and the decision not to review credit was made by the banks because they wanted those ARMs.

      An entire program about the Credit Default Swaps was on CNBC and how they ;have contributed to the problem. Because they can not pay for the loans that went under.and I assume you know that Credit Default Swaps are INSURANCE AGAINST BAD LOANS, and they can't pay, the credit default swaps are a very large part of the problem. And the leverage that was not sufficient? You don't recall that.
      If the banks had not been so careless and greedy to get those ARMs they would not be in the mess they are in.

      The fact that you and I understand loan documents is great, and the fact that you and I are probably going to weather this fine because of type of profession and education, does not in any way help with the solution of the problem.

      Its not just me me me in this country. Individuals can not solve this, and just because you can pull yourself up by your bootstraps does not insure that the whole economy can do it. If it sink low enough, you too, will go with it.

    • 4 years ago
  • Ihatethemall
    • 0
      Ihatethemall  
    • Ihatethemall:

      I really don't think you get me.......I am done caring about who what where why or how we got into this situation. I can survive without gainful employment because of the situation I'm in. My house is near paid for { thanks to the guy who bought my house in Vegas} and I raise what I eat, obviously with some exceptions. If I had to I could cut dowm to only eating what I raise and I would still have veggies and meat every day. For a long long time. If need be I could raise the rest of what I need to pay off my place through family. I don't care anymore if there is a total collapse of society. I still think it would rid us of the undesireables, and I for one wouldn't miss them. I may die fighting to save my place from the police, military or armed bands of thugs, or whatever, that would be roaming the hillsides. I'm O.K. with that too. I don't have any kids to worry about and I am well into middle age. This country is going downhill fast as we all know and most of it is our own fault for letting the GOV and corps and banks get away with the shit they have been getting away with for decades. Like they say, People get the government they deserve, well we are going to get what we deserve.

      I am not afraid of a collapse of society, I'm waiting for it. and theres a lot of folks like me out there, I know I talk to them.

    • 4 years ago
  • Ihatethemall
    • 0
      Ihatethemall  
    • Ihatethemall:

      Just to make another thing clear, I do feel sorry for anyone who loses their job and can no longer afford.....whatever... especially those who had loans they could afford while they were working and now lost their job due to the slow times we are facing. But you have to admit, there are some really stupid folks out there. I'm sure you have seen many living where you live. I.E. all the idiots who have "hurricane partys" knowing there is a major dissaster on the way some people will still hang around to party. life is no differant, one should always prepare for anything that comes your way.

    • 4 years ago
  • carmalite
    • 0
      carmalite  

    • Ihatethemall, I understand that you think its the lazy and the weak or the disadvantaged that caused this total economic mess, but dude, do realize that the millionair investment bankers and the Mortgagors who pushed undereducated people into ARMs who QUALIFIED for 30 year loans are to blame.

      Add on the criminal corrupt CEOs who over leveraged, OVERLEVERAGED because of greed, and the Insurance companies like AIG that did not carefully issue CREDIT SWAPS and they do outnumber the dumb, poor, and stupid and they still got bonuses after they ripped off all of us in one way or another.

      The banks wanted the ARMS....AIG wanted to sell CREDIT DEFAULT SWAPS which btw are not regulated at all.
      Credit Default Swaps are still being issued and still unregulated. And the bankers are still trying to push people who qualify for a 30 year loan into ARMS, because they are greedy greedy greedy and irresponsible. My relative who is young but earns 6 high figures a year and has excellent credit recently bought a nice house at a good price, and they spent a long time trying to get him to get an ARM.
      And their bank is one of the ones we are seeing on the news. LOL
      Put the blame where it really belongs. It does not do either of us any good if the guy next door loses his house because our values are already down. My value has gone down and I pay all my bills and it won't do me any good to rail against the guy 2 blocks away who lost his job and is being forclosed upon.

      People who lose their jobs can't pay their bills. You could be next. Any of us could be next.

    • 4 years ago
  • Ihatethemall
    • 0
      Ihatethemall  

    • He's right. There is no bottom. Obama and all this borrowing and printing money will speed things up. 2 trillion dollars in the last 12 months. I look forward to a total collapse. It will rid this country of the lazy and the weak that help drag us down. I am prepared. whether its food water guns or ammo. I'm ready.

      Enjoy the ride.

    • 4 years ago
  • carmalite
    • 0
      carmalite  

    • Unfortunately, I think he is right. Globalization will keep it going. We need to export to help our economy and everything we own is in China.
      It could be fixed but the elite will fight any corrections with tooth and nail. They benefit from our lack of industry, because they are heavily invested in China and the third world, and no longer care about what happens here.
      I am not very optimistic unless Americans develope a backbone. Rush Limbaugh has already declared he hopes Obama fails and that he intends to take his vast fortune and move to New Zealand. That mindset is what wants America the bananna republic to exist.

    • 4 years ago

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