April 10, 2008 | posted by Michael Baxter in credit crunch |

George Soros is making waves again. This time, in an interview with Bloomberg, he has had a go at the latest IMF projections, and suggested things are set to get worse.

“This is a man-made crisis and it’s made by this false belief that markets correct their own excesses.  It will take much longer for the full effect of the decline in the housing market to be felt,” Soros told Bloomberg.

He added, “We have not yet seen the full effect of possible recession. It only relates to the decline in the value of the various financial instruments which are held by the banks and other institutions,” and estimates “don’t in any way reflect possible decline in the quality of the loans that they hold. These are the eventual losses that are yet to be seen.” Soros  recently predicted that the current recovery in markets will be shortlived, and said there will be another sell-off soon.