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.