Soros: US set for long slowdown

The US economy is in for a "lasting slowdown" and could face a Japanese-style period of relatively low growth with the added problem of high inflation, billionaire investor George Soros (right) said.

Soros told Reuters Financial Television that rescuing US banks could turn them into "zombies" that suck the lifeblood of the economy, prolonging the economic slowdown.

"I don't expect the US economy to recover in the third or fourth quarter so I think we are in for a pretty lasting slowdown," Soros said, adding that in 2010 there might be "something" in terms of US growth.