Current crisis is worst since Great Depression: Soros

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    The billionaire investor says that global equity markets will fall more this year after a brief rebound and that the credit crunch is probably far from over
    The current financial crisis across the world is the worst since the Great Depression and the credit crunch is probably far from over, according to billionaire investor George Soros. He also says that global equity markets will fall more this year after a brief rebound. ​
    The markets have hit a significant but temporary bottom, Soros was quoted as saying by a leading US business channel. "I don't think we are halfway through the fallout, because to think what happens in the financial markets doesn’t affect the real economy is nonsense," Soros said.
    In a separate interview to a newswire agency, Soros said it was a good bottom, referring to the recent spurt in stocks and the dollar. He added that it will probably not prove to be the final bottom and that the rebound may last six weeks to three months as the US inches closer to a recession.
    The Federal Reserve has dropped their benchmark interest rate 2% this year to 2.25%, but Soros believes the US central bank has little head room to cut borrowing costs further, given the weak dollar. "We are close to the limit," he told the newswire.
    On developing markets, Soros hasn't abandoned his holdings in India, even with the 22% drop in the benchmark BSE Sensex this year. "The fundamentals remain good," he said. However, he is less certain about what will happen to Chinese H shares, which trade in Hong Kong.

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