- Millions Could Have to Repay Part of Obama's Tax Credit
- What Recovery? Many Homeowners Still Underwater
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
- How Will Retail Fare Over Holidays? Signals Are Mixed
- Madoff Auction: $4,750 for a Decoy Duck?
- Slideshow: Madoff's Luxury Boats Go Up for Auction
- How Much Do You Know About Green?
- Solar Energy Emerges From a Dark Period
- Drillers Seek Scotch Lost in Antarctica in 1909
- 'Blood and Business Don't Mix' — A Family Business Survival Guide
- Mixed Signals Come From Retail Sector as Holidays Draw Near
- Will the S&P 500 Close Above 1100?
- What Were The Northwest Pilots Really Doing?
- Your Jobless Recovery Game Plan
- S&P to Hit 1,175 in the Short Term: Strategist
- Busch: US Health Care Bill a Concern for the Chinese
- Underwater Mortgages Could Sink Even Deeper
- My Market and Fed Outlook Now: BlackRock's Doll
MOST SHARED
- BlackRock: Central Banks To Be Net Buyers of Gold
- Millions May Have to Repay Part of Obama Tax Credit
- Cisco Ups Tandberg Bid, Claims Over 40% Backing
- Gold Is in a 'Bubble' And Will Keep Going Higher: Gartman
- Underwater Mortgages Could Sink Even Deeper
- Weak US Housing Market Drags on Lowe's Profit
- Devon to Sell its Gulf, International Assets
- Madoff Auction: $4,750 for a Decoy Duck?
- Several Credit Card Companies See Default Rate Fall
Text Size 
The ongoing financial turmoil and economic gloom will take 10 or 20 years to heal, Hugh Hendry, partner at hedge fund Eclectica, told CNBC.
"It's not a question of losing out in a recession, I'm talking about 10 or 20 years before we recover from this. This is a catastrophe," Hendry told "Power Lunch Europe."
Bank of England Governor Mervyn King confirmed the country is probably heading toward recession for the first time Tuesday, but Hendry says the outlook spells depression.
UK interest rates will be slashed to 2 percent by the end of the year, Hendry said. But that won't be enough to avert disaster, he added.
(Watch the full CNBC interview with Hendry above).
Interest rates should have been reduced before the turmoil took hold and the economy has been allowed to stall, Hendry said.
The European Central Bank is also at fault, according to Hendry.
"History will send the ECB to damnation because they have sent us to damnation," he said.
Hendry is increasing the risk exposure in his hedge-fund's portfolio, having avoided risk in recent years. The hedge fund industry has suffered serve losses in recent months.
"The reality is that most hedge funds bought into the myth, bought into the dream, like everybody else and they're getting destroyed," Hendry said.
For the Investor:
What the Pros Say: When Will it End?
Cramer: Kerkorian's Ford Sale a Defensive Move
Citigroup Strategist: Investors Should Dip Into Stocks
Bankrate: Inflation-Adjusted Bonds a Good Deal
How to Shop Smart in a Bad Economy
Five Rules for Saving More Now
Analysts Target Healthy Drug Stocks
Print
Email
- Where, what, how.
- CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
- De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
- Why are the Chinese concerned about the progress of U.S. health care legislation?
- The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
- If a terrible driver on your morning commute has you feeling like you want to scream, check this out.
Data is a real-time snapshot *Data is delayed at least 15 minutes