Financial Crisis Now in Second Stage, Double Dip Possible: Soros

Financial Crisis Now in Second Stage, Double Dip Possible: Soros By Reuters Thursday, June 10, 2010 VIENNA, Austria (Reuters)—Billionaire investor Georges Soros said the financial crisis was far from over because action taken for the short-term was the opposite of the right action for the long term, raising the risk of a double-dip recession. "In retrospect the collapse feels like a bad dream," he told the Institute of International Finance in Vienna in a speech. "The collapse of the financial system is real and the crisis is far from over, indeed we just entered act two when financial markets started to lose confidence in the credibility of sovereigns. Greece and the euro take the centre stage but the effects are liable to be felt worldwide." Mr. Soros said the situation was 'eerily reminiscent' of the 1930s. "Many governments have to reduce debt under pressure from financial markets. This is liable to push the global economy into a double dip," he said. By Boris Groendahl