George Soros is one of the truly legendary figures in world finance. He doesn't use fancy mathematics and he doesn't follow the crowd. In 2007 he predicted the coming collapse of the world financial system. Unlike other pundits, Soros has the courage to make huge bets, often using his "feelings" about what he sees is happening.In 2007, he came out of retirement to trade his hedge fund and made $2.9 billion. This past year his fund made $.1.7 billion. He is listed as one of the top 25 hedge fund traders in the world, with an estimated net worth of $11 billion.
There is another part of George Soros that is unique. He has given an estimated $6 billion dollars to charity.
Soros is now saying that commercial real estate will probably fall by 30% and that the U.S. Treasury should be sure that banks are adequately capitalized to meed this new onslaught. He calls the upcoming drop "inevitable" and everybody knows it. Deutche Bank AG said that its property index could decline by 11% this year.
He feels that the Obama Administration must move quickly to recapitalize the banks. His solution would be to draw a line over existing bad assets and create new banks on top of the old ones. He would then keep the capital to cover old bad assets, which he feels will deteriorate for several years.
He also said that we are setting ourselves up for a new round of inflation because of the large increase in the money supply. He said that while now we are in a period of deflation, it could easily tip over to inflation. Then the Fed would need to start pulling money out of the economy.
Do you believe that Mr. Soros is right?
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Reader Comments (Page 1 of 1)
3-31-2009 @ 12:20PM
Mike said...
Soros is not saying anything we don't already know.
3-31-2009 @ 12:33PM
Iridium said...
Soros uses his massive hedge funds to manipulate and control the markets. He doesn't "feel" anything other than greed.
He donates to charity for tax protection not because he cares. One of the best things for the world would be for Soros to suffer a massive coronary tommorow.
Anyone with a rational brain could tell you that the world's finacial system was going to collapse. I just didn't have massive funds to profit off it.