WASHINGTON (Reuters) - George Soros, chairman of Soros Fund Management, testified at a House Oversight and Government Reform Committee hearing on Thursday. Highlights:
* Said "a deep recession is now inevitable and the possibility of a depression cannot be ruled out."
* Said hedge funds were an integral part of the financial market bubble which now has burst.
* Said hedge funds will be "decimated" by the current financial crisis and forced to shrink their portfolios by 50-75 percent.
* Said Fed, Treasury Department and the SEC must accept responsibility to prevent market bubbles from growing too big in future.
Said impossible to prevent market bubbles from forming, but they can be kept within "tolerable bounds."
* Said financial engineering should be regulated and new products approved by regulators, and that such regulation should be a high priority of the new Obama administration.
* Said a recent IMF credit facility not large enough to stabilize markets.
1 comment:
Soros said market bubbles should be kept within "tolerable bounds".
That is another one of the most ridiculous comments this horse's ass has made.
They are "tolerable" if Soros is making money and "intolerable" if he loses.
We need less regulation and less backing of risky investments (see Fannie and Freddie) so the markets can work freely. Everyone, including Soros, kept expecting the US Govt to cover any bad things that could happen. Unfortunately, they are bigger than the US Govt now.
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