Soros harsh on US economy, banks and recovery

If you are looking for some positive news from Soros, today is not the day. He’s full of doom and gloom though he does think it will be China that will be the first country to emerge from the crisis. Reuters:

The U.S. economy is in for “a lasting slowdown” and won’t recover this year, while “the banking system as a whole is basically insolvent,” billionaire investor George Soros told Reuters Financial Television Monday.

While nationalization of banks is “out of the question,” he said stress tests being conducted by the U.S. Treasury could be a precursor to a more successful recapitalization.

But he warned about the danger of watering down mark-to-market accounting rules, saying this creates conditions for prolonging the life of U.S. ‘zombie’ banks.

He goes on to say that the initial recovery will not be until 2010 though for the US he remains non-committal. Emerging from this cycle will be a lot more difficult than many believe, even with the lowered expectations.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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