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George Soros predicts the 2008 economic meltdown is happening again

George Soros is the chairman and founder of the Open Society, and it form networks of partners, projects, and foundations in more than 100 countries. Soros commitment to the idea of an open society where the government is accountable, rights are respected, and believe that no one has the monopoly on the truths make the Open Society a unique philanthropic foundation. https://www.opensocietyfoundations.org/people/george-soros. He pointed out his success in financial markets give him a greater degree than most people, and this obliges him to take a stand on controversial issues, since often the affected population may not be able.

George Soros started his career in 1950, and he gained a reputation for his investment prowess in 1992 after netting $1billion with a bet that the U.K pound would be forced to be devalued. http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says. In addition, he has greatly helped in bringing accountability and transparency in natural resource extraction industries through international system. Over the past years, the practice of making secrets payoff to local tyrants in extraction industry fueled some of the most heinous violence and worst political unrest. https://www.opensocietyfoundations.org/people/george-soros

According to George Soros, the current economic environment is similar to that experienced in 2008. His prediction is that the 2008 financial meltdown is happening again. He has been quoted in The Economist saying that the current financial markets reflect and remind him of 2008. Soros believes China economy is having some serious problems, which are being transferred to rest of the world. He points out that even though many world news sources and China government say otherwise, concerning Chinese economy decline especially the manufacturing sector, China economy has problems. http://www.economist.com/blogs/buttonwood/2016/01/markets

The growth and geopolitics are major issues that make 2016 reflects 2008. The World Bank has already predicted 2.9% drop from 3.3% growth in 2016. Nevertheless, the crashing commodity prices indicate that we might be heading in the same position in 2016. http://www.economist.com/blogs/buttonwood/2016/01/markets

George Soros predictions have been welcomed around the world. Albert Edward, a strategist at the bank of Société Générale also concedes with Soros views. He stated that the Western countries are about to be hit by a wave of deflation from emerging market economies, yet the central banks are not aware. This can be reflected by turbulence in the market since the beginning of the year. http://www.theguardian.com/business/2016/jan/12/beware-great-2016-financial-crisis-warns-city-pessimist

As explained on Bloomberg Business http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says the measure of volatility is surging since the start of the year. The Chicago Board Options Exchange Volatility Index, commonly known as fear gauge has climbed 13 % up. The Nikkei Stock Average Volatility Index, which gives a cost of protection against Japanese shares, is about 43% up. Merrill Lynch index, which measures anticipation of price swing in Treasury bond, has already climbed 5.7%. It seems the stock markets are acting as if Soros is right.

George Soros’s Position on the Global Market Crisis

George Soros hedge fund mogul and the chairman of Soros Fund Management is a philanthropist. Being born in Budapest, he has risen to being one of the most successful financiers and his views on economic is one followed closely. George prediction, highly motivated by Eastern Europe and Russia where books linked to his charity organization had been burnt possibly signaling a targeted communist position. A total of 427 books were shredded, and an additional 53 books were burnt. A distorted perception of changing the Russian Ideology termed Alien. To show the world he was right, George wrote an article titled “Europe and Ukraine: What Should be Done?”

During a Fotune.com forum in Sri Lanka, he pointed out that the global market was facing a crisis, and he advised investors to take note of the turmoil China is facing. He goes on to say that china’s currency devolution caused by not finding a new growth model will affect the rest of the world ever since the country underwent a market meltdown. George Soros believes that the financial markets in 2016 are similar to that of 2008. He argues that the Chinese regulations were restricting people to trade as they think it could surpass the seven percent loss incurred. The Institute of Supply Management (ISM) has evidence that China has had a decline in its manufacturing ability. ISM, one of the most trusted supply chain management supports the claims by the Investments Week that the economic crisis is real in China as stated by George Soros.
Also, he believes that growth and geopolitics are major issues that make 2016’s economy look very similar to 2008. He faults the Fed for its role in providing cheap money creating inflation in assets and an earning mirage. He cites that the Fed’s hyper-accommodative monetary policy is frontloading a market rally. By doing so, he says that the earnings growth is not sustainable and invokes a market crash resulting in a payback period.

As volatility spikes, his comments spikes across global markets are being further confirmed by the fall of FTSE all the way to 4.9 percent at the beginning of the year and the S&P 500 falling another 2.4 percent in the latest trading session. Deflation from emerging markets could eventually derail Central Banks and that there will be a financial crisis that will prompt the collapse of the Eurozone. Soros’s view is further confirmed by the stock analyst who is advising people to sell off everything. It is according to The Gurdian.
The predictions of George Soros profitable trader have been welcomed around the world as the meltdown in 2008 is one that will not likely be forgotten. Overall, the grave concern by George is being supported by most key figures in the world such as Carl Icahn and Richard Fisher, the former CEO, and president of Federal Reserve Bank of Dallas.