New York mayor predicts economic downturn

by Robin Millard Sun Sep 30, 5:51 PM ET
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BLACKPOOL, England (AFP) - New York City Mayor Michael Bloomberg warned Sunday a global economic downturn was looming, triggered by the "lunacy" of public debt.

Bloomberg, one of the world's richest people, blamed a crisis of confidence for what he said would be either a brief dip or a nosedive.Advocating fiscal conservatism, Bloomberg said governments should build up a surplus to fall back on during economic slides.

"Being a fiscal conservative means preparing for the inevitable economic downturns -- and by all indications, we've got one coming," he told the annual conference of Britain's main opposition Conservative Party in Blackpool, north-west England.

The founder of financial news and data giant Bloomberg said administrations had to create the conditions for markets to work and bore a responsibility to pay their own way.

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The tycoon blasted some US conservatives, saying: "Too many of them want to run up enormous deficits and hope that some way, somehow -- someone else will pay for it. That's not conservatism -- that's alchemy, or, if you like, lunacy."


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