\u201cThe collapse of the financial system as we know it is real, and the crisis is far from over,\u201d\u009d Soros said today at a conference in Vienna. \u201cIndeed, we have just entered Act II of the drama.\u201d\u009d<\/p>\n
Soros, 79, said the current situation in the world economy is \u201ceerily\u201d\u009d reminiscent of the 1930s with governments under pressure to narrow their budget deficits at a time when the economic recovery is weak.<\/p>\n
Concern that Europe\u2019s sovereign-debt crisis may spread sent the euro to a four-year low against the dollar on June 7 and has wiped out more than $4 trillion from global stock markets this year. Europe\u2019s debt-ridden nations have to raise almost 2 trillion euros ($2.4 trillion) within the next three years to refinance, according to Bank of America Corp.<\/p>\n
\u201cWhen the financial markets started losing confidence in the credibility of sovereign debt, Greece and the euro have taken center stage, but the effects are liable to be felt worldwide,\u201d\u009d Soros said.<\/p>\n