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May 26, 2008
Rebound May Be Temporary, says Soros
Filed under : Hedgetalk

© Dale Gillard
Also on the downside, hedge fund billionaire George Soros said that the current rebound in stock markets is only a bear market rally.
According to Reuters, Soros told a seminar at the London School of Economics, "The prevailing market opinion is that this crisis is like previous ones. … Markets have been rallying on that. But I think it's actually just a bear market rally based on a false conception the authorities can handle all these crises"
"This time the ability of the authorities to handle the crisis is constrained – they'll not be able to avoid a recession…Certainly the idea that the economy is going to recover (at the end of this year) is totally unrealistic," he said.
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