Soros says 'we have just entered Act II' of crisis

LONDON - Billionaire investor George Soros said "we have just entered Act II" of the crisis as Europe's fiscal woes worsen and governments are pressured to curb budget deficits that may push the global economy back into recession.

"The collapse of the financial system as we know it is real, and the crisis is far from over," Soros said at a conference in Vienna. "Indeed, we have just entered Act II of the drama."

Soros said the current situation in the world economy is "eerily" reminiscent of the 1930s with governments under pressure to narrow their budget deficits at a time when the economic recovery is weak.