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George Soros is out there predicting again. Of course, he’s famous for breaking the Bank of England in 1992 and making a cool billion in the process. So perhaps he’s worth listening to.

This time, Soros sees bad news for the United States. Very bad news.

Billionaire investor George Soros forecast on Monday that the U.S. economy is “on the verge of a very serious economic correction” after decades of overspending.

“We have borrowed an awful lot of money and now the bill is oming to us,” he said during a lecture at the New York University, also adding that the war on terror "has thrown America out of the rails."

Asked whether a recession was inevitable, Soros said: “I think we are definitely in for a slowdown that I think will be a bigger slowdown than (Fed Chairman Ben) Bernanke is seeing.”

Famous for his speculative attack on the Bank of England that made him more than $1 billion, Soros declined to nominate which currencies are more vulnerable currently. He also declined to comment specifically on the dollar.

“I know exactly where the currencies are going to but I'm not going to tell that to you,” he told the audience.

According to Soros, we’re on the verge of a recession. Maybe, but I’m a bit skeptical. Soros said the same thing last year, and a recession didn’t come about. In fact, economic growth has accelerated for the past two quarters. Nine years ago, Soros said that the global capitalist system “is coming apart at the seams,” yet this could be the strongest world economy ever seen.

Still, if you constantly predict awful news, sooner or later, you're going to be right. In my book, the doomdayers need to work on their timing.

Posted by edelfenbein at November 6, 2007 9:39 AM