Subprime may lead to $1-trillion worth losses: Soros

Soros said, "I hold this market fundamentalism primarily responsible for the current financial crisis. This is a man made crisis and is made by this false belief that markets correct its own excesses. That is the job of the regulator. And the regulators failed to perform their job." 

Soros added, "It is a question of how flexible the market is and how soon the full extent of the losses are recognised. But I think the situation is more serious than the authorities admit or recognise." 

Meanwhile, Simon Johnson , Chief Economist, IMF said, "In the US, the economic growth is nearly stalled against the backdrop of weak financial confidence. We expect the consumption to remain sluggish in the coming quarters due to deteriorating labour market conditions, slow growth in disposable incomes, high energy cost and tighter constraints in household borrowings."