THE U.S. CONSUMER

Billionnaire investor and entrepreneur, George Soros backed America’s plan to buy equity in banks but forecast a quite serious recession. The real economy, he said, is now going to enter into quite serious recession but if the right things are done, then there is a distinct possibility of coming out of the recession. In the last 25 years, Soros said Americans have basically consumed six to seven per cent a year more than they have produced, consequent to which other people, the Chinese, the Oil producing countries have built up a dollar reserve which they are now going to covert in real assets.Soros thinks that problems that confront with regard to energy, global warming, energy dependence will require very large investments replacing the consumer as the driving force for the economy in the next few years.