Billionaire investor George Soros is pretty darn bearish about the current U.S. financial 'credit crisis' and its future implications on the REAL economy. Below are some of his comments courtesy an interview today with Reuters :" Therefore, his (U.S. Federal Reserve Chairman Ben Bernanke) options are limited -- he is boxed in...This incident is not the last one..Freddie Mac (FRE) and Fannie Mae (FNM) have a solvency crisis, not a liquidity crisis..There's no problem in their borrowing. And in fact, insofar as there is a problem, the Fed is there to provide the liquidity..The deterioration in the housing market, the foreclosures, are going to cause losses which exceed their (Fannie Mae and Freddie Mac) equity...This is a very serious financial crisis and it is the most serious financial crisis of our lifetime...I think the dollar is vulnerable because the (U.S.) economy is going into a recession and the actions of the authorities do involve the accumulation of debt...There is various ratios by which the creditworthiness of a country's assurances are deteriorating...It is inevitable that it is affecting the real economy. It is an idle dream to think that you could have this kind of crisis without the real economy being affected. "
reuters.com/article/ousiv/idUSN1444921820080715?
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*Anecdotally thinking + given Soros' sharp and somewhat aggressive rhetoric (does he really believe the current credit crisis will ECLIPSE the 1980-90's U.S. Savings & Loans Crisis??), he's probably sporting an investment portfolio that benefits from betting against the market (a 'bearish' portfolio)
Data Courtesy: Reuters
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