Soros Warns Of Economic Crisis Worse Than 2008

George Soros has a wide theater of works such as hedge fund management, financial strategy, economics as well as politics. Not only that but he also earned a name for himself by “breaking the bank of England,” by short selling US dollars and reaping a massive profit of one billion during Black Wednesday. So needless to say, when the Hungarian mogul speaks on financial matters people tend to listen.



This is just what occurred at a recent economic summit in Sri Lanka were Soros spoke over his concerns about the state of the global economy, ominously stating that the current state of economic affairs for the world’s major markets (which have been experiencing massive downturns) reminds him of the financial situation present during the 2007 and 2008 financial market housing bubble crash.



Soros allocated a great deal of the trouble facing the world markets on facebook.com to the economic downturns experienced at the tail end of the year in 2015 which carried over into 2016 a domino effect that was put into motion, accidentally, by the Chinese financial sector. The reason, he said, that China is having so many problems is that the nation has yet to make their currency easily convertible and as well as the seeming lack of any kind of progressive growth model moving forwards. In addition, he noted that there also needs to be work done for the Chinese economy to return to more positive interest rates and some thought given to the fact that China is shifting rapidly away from manufacturing and heading towards a more consumerist and service based market conception.

George 

Soros said that China’s adjustment problems amounted to a “crisis” akin to the financial collapse experienced in the United States in 2008, only much, much worse. Soros went on to say that it is something everyone should be concerned about. There is now a great deal of statistical data backing up Soros’ claims, such as the data analyzed by the Chicago Board Options Exchange Volatility Index, commonly referred to as the “Fear Gauge” which has shown a clear-cut increase in market instability – a rise of thirteen percent – a trend which other volatility indexes (such as the Nikkei Stock Average and the Merrill Lynch Index) are also documenting.



However, not everything is all doom and gloom, for instance, China has released public statements pledging to put forth a plan for increased Yuan convertibility as well as to focus more on their manufacturing sector. What the future holds, for China’s economy, as well as the rest of the world’s is unclear, what is clear is that whether things improve or not they will likely have to get much worse before they get better.


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