Soros: US Markets See Recession Ahead, Not Shorting Euro (China Has Interest)

George Soros - World Economic Forum on Flickr
In a long interview with Spiegel on Monday, George Soros, chairman of Soros Fund Management, said the creation of euro bonds would save the euro zone, but "if the euro were to break up, it would cause a banking crisis that would be totally outside the control of the financial authorities" and cause a great depression. However, Soros is not shorting the euro because he sees China as the "mystery buyer" (the China put?).

At the end of last June, EUR/USD and equities rallied after Chinese Premier Wen Jiabao said China would continue to buy European government debt and support the euro (Bloomberg). I see EUR/USD as the next big trade once it gets forced out of the symmetrical triangle. Soros also said U.S. markets are predicting a double dip recession ahead... Read the full interview at Spiegel