The dire state of Britain’s public finances means the country may have to go to the IMF for a financial bailout, according to billionaire investor George Soros.
Mr Soros predicted the prime minister faced having to beg for billions of pounds in aid.
Speaking to The Times newspaper days after an auction of government bonds failed,
Mr Soros, who made $1 billion betting against sterling on Black Wednesday in 1992, said: ‘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 billionaire philanthropist added that it was a ‘possibility’ Britain would turn to the IMF for help if the banking system continued to collapse.
The recession is a ‘once-in-a-lifetime event’, he explained.
Mr Soros added: ‘This is a crisis unlike any other. It’s a total collapse of the financial system with tremendous implications for everyday life.’
And with repossessions running at twice the rate of last year, there are fears it could rise still faster in 2009 – with up to five million individuals on the list by the end of the year.
‘I’m having a very good crisis,’ says Soros as hedge fund managers make billions off recession
George Soros said the current economic crisis has been the culmination of his life’s work
George Soros, who predicted the global financial crisis twice before, was one of the few people to anticipate and prepare for the current economic collapse.
Mr Soros said his prediction meant he was better able to brace his Quantum investment fund against the gloabal storm.
his decision to come out of retirement in 2007 to manage the fund made him $US2.9 billion.
And while the financial crisis continued to deepen across the globe, the 78-year-old still managed to make $1.1 billion last year.
‘It is, in a way, the culminating point of my life’s work,’ he told national newspaper The Australian.
Soros is one of 25, top hedge fund managers from across Wall Street who have defied the credit crunch crisis to reap a total of $11.6billion (£7.9bn) last year.
John A. Paulson, who made his fortune by betting against the housing market, came in second earning $2 billion.
Wise Up Journal article from 2007: Irish Stock Market Crash & Global Depression *