The American hedge fund manager John Paulson has stated that: “The hedge fund industry is part of the landscape, however there will be consolidation.”
Speaking at a hedge fund conference in Dubai, Paulson said that no-one has experienced a crisis like this in their lifetime, and that the collapse of Lehman Brothers was the tipping-point for the industry.
On a macro-economic level he stated that China and the UK may be putting their respective economies on the right track.
“The UK did the right thing by insuring equity. The problem is much more equity is needed. The government has to put in the capital to stop banks failing. It is not relevant if they are nationalized or not as this is only temporary,” Paulson said.
Talking about China, Paulson stated than the country has done better than any country in the world with high savings rates and stimulus packages, however the question is whether the stimulus will cushion the slowdown in the export sector.