<<UPDATE 1-Soros skeptical of U.S., global economic prospects
Fri Jan 27, 2006 9:27 AM ET
NEW YORK, Jan 27 (Reuters) - Billionaire financier George Soros told CNBC television on Friday U.S. consumer spending would slow sharply next year as a slowdown in housing hurts purchasing power.
"There's (a) problem that I think is brewing, and that is the end of the housing boom in the United States and the ability of households to spend more than they earn because the value of their house is rising," Soros said in the interview.
"So I expect that by '07 there will be a significant decline in U.S. consumer spending and I don't see what will take its place because it's so important as a motor of the world economy," he said.
Soros argued that a veneer of relative calm both in the United States and international financial markets masked some troubling patterns in the global economy.
"Everything looks to be just hunky-dory but I don't think the outlook for the next two years is very good," he said. "The downside risks are bigger than the upside potential."
Speaking at a the World Economic Forum in Davos, Switzerland, Soros said global leaders appeared overly optimistic.
"The conference is remarkable for its complacency. It's a bit like dancing on the Titanic. They're having a very good time and there's a very cheerful atmosphere.">>
He played his video game night and day.
The MAZE of Death.
But that is the game we all are in, the trick, don't believe it.Get above it all and imagine nothing is what it seems.Kill the machine.otraque
AI
