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).
Its 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. Its 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 worlds last chance to avert economic disaster.