George Soros has taken the unpopular side of many economic bets over the years. He has not only lived to tell the tales. He has made himself and his investors untold billions of dollars in the process.
Now, as the markets seem to be recovering and the clouds parting, Soros claims that what we are seeing now is a bit of a "bear market rally." If that is the case, investors buying into it will be crushed beneath the wheel of a vicious market reversal.
The Wall Street Journal writes that Soros recently said “The markets are breathing a sigh of relief but the fallout in the real economy is only now beginning.” Soros does not even bother to say that there is any light at the end of the tunnel.
While Soro’s view is a minority report, it is one from a man who has made his bones on good judgment set against bad economic forecasts. He looks at the world and says that the write-offs and damages to the financial systems have a ways to go.
If he is right, all hell is coming.
Douglas A. McIntyre