House of cards: Soros warns of US recession

Having reached a peak, if “housing continues to cool”, then “it could turn into a hard landing. That’s why I expect a recession to happen in 2007, not 2006.” High US housing prices have been a key reason why rising energy costs did not derail economic growth last year.

Buoyant housing prices almost “exactly outweighed the negative effect of the higher price of oil” by supporting domestic consumption.