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Davos - Media mogul Rupert Murdoch said on Wednesday that the West was paying the price for a spending "binge" and that recovery would take time despite government stimulus efforts.
"The crisis is getting worse," the News Corp chief told a press conference at the Davos forum where political leaders and the business elite have gathered for their annual meeting.
"It's going to take drastic action to turn it around, if it can be turned around quickly. Personally, I believe it will take some time."
He added: "We've been living in the Western world way above our means. We've been on a great binge and it's come to an end and we have to live though the correction."
Murdoch said people were traumatised by the events of the past year, during which stock markets have plunged and housing markets have collapsed in many countries.
"The great majority of the people in the world are depressed and traumatised by the fact that their savings, the wealth in their homes or pension funds... a big percentage of it has disappeared."
The solution he said was not to be found in overly restrictive regulation or a rejection of capitalism.
"Don't let's lose sight of what creates wealth in this world: it is open markets, it is capitalism and we have proved this again and again in the last century," he said.
- Sapa
