Cheaper US housing overshadows world economy: Soros

Tue Jul 4, 4:34 PM ET

A big question for the global economy is whether it can absorb the effects of a fall in the value of U.S. housing that has until now generated huge amounts of spending, billionaire financier George Soros said on Tuesday.

"The U.S. consumer has benefited from the rapid rise in the value of housing," Soros said. "Equity could be withdrawn from that increased value. Basically half of that is spent."