George Soros said at a panel discussion in Vienna today that “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread.”
The billionaire hedge fund manager whose huge bet on the collapse of the British pound earned him one billion dollars warned about the severity of the Euro crisis, saying, “The financial system remains extremely vulnerable.”
He also explained how the crisis will probably end, according to Bloomberg: it’s “probably inevitable” that a mechanism will have to be put in place to allow weaker euro-region economies to exit the Euro.
“I think most of us actually agree that [Europe’s crisis] is actually centered around the euro… It’s a kind of financial crisis that is really developing. It’s foreseen. Most people realise it. It’s still developing. The authorities are actually engaged in buying time. And yet time is working against them.”
Of course he’s talking about authorities’ efforts to prevent a Greek default by offering help contingent on a budget overhaul. Preventing a Greek default is important because people worry that it would set off much larger and more damaging defaults in Spain, Portugal, and Ireland.
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