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)