George Soros sees further market declines
Billionaire investor George Soros said the financial crisis is the worst since the Great Depression and the markets will fall once more this year after a brief rebound, Bloomberg News reported on Thursday.
“We had a good bottom,” Soros told Bloomberg, referring to Wall Street’s rally following JPMorgan Chase’s deal to buy beleaguered Bear Stearns Cos. “This will probably not prove to be the final bottom,” he told Bloomberg, adding the rebound may last anywhere from six weeks to three months as the US moves closer to a recession.
Soros told Bloomberg he recommends the creation of an exchange with a sound capital structure and strict margin requirements, where current and future contracts could be traded. He also said banks must control their own borrowing and curtail lending to clients such as hedge funds by demanding greater collateral and margin requirements on loans. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.