Soros was speaking at the World Economic Forum's annual meeting in Davos, Switzerland.
According to the Daily Telegraph, Soros, who is one of the most famous hedge fund managers in the world, warned Davos goers that with worldwide interest rates remaining low, policymakers are risking generating new bubbles which could eventually cause crashes in the future: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold," he said.
Soros added that by proposing imminent "exit strategies" from the unparalleled support governments have handed out to troubled banks and consumers, they could now be in danger of triggering a double-dip in the global economy.
"I think that since the adjustment process to the recession is incomplete, there is a need for additional stimulus. Some countries, like the US and European countries, have plenty of room to increase their deficits. The political resistance to doing so increases the chances of a double dip in the economy in 2011 and after that," he told the convention.
Soros ended his address with expressed support of US President Barack Obama's plan to split up large US banks, but said that proposals to tax the banking system could also endanger the recovery.
