Britain may need IMF bailout,says Soros

Hungarian-born billionaire George Soros said on Saturday that it is “conceivable” that Britain would have to resort to a bailout from the International Monetary Fund...

Written by Agence France Presse | London | Published:March 29, 2009 10:37 pm

Hungarian-born billionaire George Soros said on Saturday that it is “conceivable” that Britain would have to resort to a bailout from the International Monetary Fund (IMF).

“It’s conceivable,” Soros said in an interview with The Times. “You have a problem that the banking system is bigger than the economy… so for Britain to absorb it alone would really pile up the debt.”

The man who made one billion dollars on short-selling sterling on ‘Black Wednesday’ in 1992 described the current recession as a “once-in-a-lifetime event”,particularly in Britain. “This is a crisis unlike any other. It’s a total collapse of the financial system with tremendous implications for everyday life. On previous occasions when you had a crisis that was threatening the system the authorities intervened and did whatever was necessary to protect the system. This time they failed.”

“American memory is seared by the Depression,the German memory is seared by hyperinflation but Britain has a pretty serious problem in many ways worse than America because the financial sector looms bigger and the overvaluation of real estate is bigger than in America.”

Soros said the G20 summit in London next week was the world’s last chance to avert economic disaster.

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