George Soros, the Hungarian-born hedge fund billionaire and owner of the globally acclaimed Soros Fund Management just offered his insight of current state of the global economy. In his insight, he said that the global markets are currently very unstable. He associates this instability to the strategic shifts in the economy of China. These shifts have affected the credits markets in this economy. The banks in this country on georgesoros.com are struggling to stay in the market and maintain operations. The market transactions are also greatly affected by this move. George Soros says that since China is the largest world economy, most of the other economies trade with it. Thus, any abnormalities in the Chinese markets reflect the entire market. So the same way the economy of China is being affected by the economic base movement from production and manufacturing to consumption and services so are other economies in the world.
George Soros says that the Chinese driven global economic crisis is very similar to the American driven crisis of 2008. He says that in both crises the credit markets are unstable and very volatile. He adds that though the two crises happened in individual countries, both transferred bad economic effects to other economies in the world. George Soros pointed out that in both crises the banks are struggling to keep the credit market afloat on project-syndicate.org. He said that banks in third world countries are increasing their interest rates to limit the loaning rates in these countries. He said the rise is worrying as it’s increasing each day. This Soros Fund Management boss said that the American stock markets are also reflecting the extent of the current global crisis. George Soros said that the volatility in credit markets globally are causing anomalies in the U.S stock markets. He further stated that the European market is also threatened with collapse as this crisis grows. He added the Asian markets have already been brought down since it was heavily concentrated in Chinese equities. According to Soros, the global extent of this crisis on http://topics.wsj.com/person/S/george-soros/209 is just as the extent of the 2008 crisis.
George Soros was born during the Nazi rule in Hungary. During this time, the nation was caught up in massive human rights abuse and government negligence. He escaped to Britain. After his study in Britain, he moved to the United States to start life as a business person. In the United States, he founded Soros Fund Management and prospered greatly in the business markets. In 1992, he made his first a billion dollars with a bet on British pound devaluation. As he progressed in business, he diversified into philanthropy. In this field too he has recorded great success in the supporting of the South Africa independence and the reunion of Germany. He has a human rights and democracy charity known as Open Society Foundation, which operates globally.