Pour cold water on Soros: The U.S. economic troubles may only just begun.

At the White House and Wall Street executives have issued optimistic outlook on the financial markets evaluation of the occasion, renowned investor George Soros has come out publicly, "throwing cold water." .7 in Washington for the Council on Foreign Relations organized an activity, Soros said that although the most difficult times of financial crisis is over, the U.S. economy because of the pains of the crisis and felt only "just begun." .Soros warned about <P> also shows that, despite the financial market like <! - ADV_CONTENT -> almost have been from the volatility in the last few months has stabilized, but specific to the overall economy, the subprime crisis "after-effects ."may last a long time. .The deepest understanding of this pain may be the consumers, which is precisely the support of the United States the biggest driver of sustained economic growth. .<P> Impact on the economy just beginning to <P> Soros said the financial crisis of the "emergency period" basically finished, but the impact on the U.S. economy is only just starting to show. .He pointed out that the U.S. authorities at all costs to prevent the collapse of the financial system, provide liquidity to the market and taken a number of unprecedented initiatives. .Such efforts to reassure the market, I believe the financial system will not collapse. .<P> However, Soros emphasized that the current global financial system has suffered damage, "will inevitably impact the real economy," and that "such an impact is just beginning to show, because there is a certain time lag." <P> Cable .Ross also said that if the Fed continues to cut interest rates, the dollar will certainly face further pressure. .U.S. Federal Reserve cut interest rates again April 30 25 basis points from last year, the seventh rate cut since September. .Soros said that if the authorities consider to stop at 2% interest rate level, will give U.S. a "breathing" space. .<P> At the same time, U.S. Deputy Treasury Secretary Daiwei Mai McCormick said in Beijing on the afternoon of 8 May, falling house prices, the subprime mortgage crisis, rising oil prices combined with the three forces, leading to the U.S. economy is now .still in the declining stage. .<P> He said that in 2008 and 2009 the housing market is still not very optimistic about the U.S. economy that has caused tremendous stress. .Talking about the subprime crisis, McCormick pointed out that U.S. financial institutions have acknowledged their debt crisis in the sub-losses. .Speaking on the last McCormick stressed commodity prices, rising oil prices, not only on the U.S. economy, but also the Chinese economy have caused a huge impact. .<P> McCormick said that the three factors contributed to the U.S. economy is still in the declining stage. .However, we can expect in the second half of 2008, the U.S. economy started to recover, to the first half of 2009, the U.S. economy began to see a better situation. .Into a consumer crunch <P> <P> Soros said the biggest risk, by cooling the property market and house prices affect consumer spending to change the existing model, that restraint over-consumption, increase savings, but this adjustment will take time. .He said that despite the current U.S. credit card debt is still increasing, but consumers will inevitably have to tighten their belts, and this process is only just beginning. .<P> For two thirds of the growth came from consumer spending in the U.S. economy, the consumer crunch will undoubtedly greatly limits the economic recovery. .In the first quarter, the U.S. economy grew by only 0.6%. .<P> Concerned about shrinking consumer spending is not Soros one. .Merrill Lynch CEO Thain said this week, despite the impact of the credit crisis in financial markets is about to end, but the U.S. consumer slowdown in the banking industry still faces problems. .With the decline in consumer spending, U.S. commercial banks in the consumer credit field, the next step may be facing huge problems. .<P> From a civil investigation of the situation, the same can not be optimistic about the prospects for consumer spending. .Recently the U.S. Federal Reserve's quarterly senior lending officer survey showed a general tightening of credit, in almost all types of loans, banks have in raising lending standards, which means consumers and businesses more and more difficult access to finance. .This is in the U.S. economy accounts for a large proportion of consumer spending in terms of activity or corporate profits, are not good news. .<P> This week released a survey of the rich against the United States showed that nearly 80% of rich Americans that the United States already in recession. .This survey is representative of the United States the richest 10% of the population of 638 families, their average disposable income was 34.2 million. .Survey, the recent economic turmoil and the respondents did not have much impact, but they are in "recession mood" being. .To this end, they are to reduce debt, increase savings and cost savings. .<P> Soros spoke in the same day, the White House once again come forward, "champions" the current U.S. economy, Lazear said the White House chief economist, believes the U.S. economy has not plunged into recession, and said the economic stimulus package in the current quarter will be .begun to stimulate economic growth, earlier than expected. .<P> Support the sovereign fund investment <P> about the subprime mortgage crisis in the same time, Soros had also shot a large scale assistance to sovereign funds in U.S. financial institutions have expressed support. .Soros said to help stabilize the U.S. financial sector, sovereign wealth funds are "positive factors." .<P> The sub-prime crisis, the world's major financial institutions have suffered heavy losses, in this case, mainly from emerging market countries, large-scale influx of sovereign wealth funds to Citigroup, Merrill Lynch, UBS and other financial institutions into the .a lot of money. .Morgan Stanley estimates that sovereign wealth fund assets could triple by 2015, reaching 1.2 trillion U.S. dollars. .<P> On commodity markets, Soros noted that the existence of global commodity price "bubble." .He also believes that the U.S. stock market is in a "bear market rally." .Since March 10 from New York, the Dow Jones stock market index has risen 10%. .</ P>.