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Oct 13, 2010, 10.13 AM IST
Billionaire investor George Soros foresees economic slowdown in both developed and underdeveloped economies ahead.
Billionaire investor George Soros of Soros Fund Management believes there is a lot of liquidity in the market right now along with a very strong tendency to deleverage. “That is happening because of uncertainty and because the banks are still sitting on a lot of rotten assets—they know it. They are trying to rebuild their balance sheet and because of that they are not lending. This is even more the case in Europe than in the US," he explains.
However, he feels, though businesses are doing well, it is not good enough to curb unemployment. “Business actually is having excellent profits but they are not investing it but increasing their liquidity. Eventually they will devour each other. They will make bids for other companies to use the money—but not creating employment,” he points out.
Soros foresees economic slowdown in both developed and underdeveloped economies ahead.. “The economy is slowing down—the developed world is slowing down. China is also slowing down because they put strong stimulus and it overheated the economy,” he adds.
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