George Soros believes the global markets are facing a crisis and investors have to be cautious. Soros was talking an economic forum in Sri Lanka when he noted that China is currently struggling to find a new growth model. He believes that the recent currency devaluation is transferring problems to the rest of the world, and developing countries’ economies are finding it hard to go back to positive interest rates. According to Soros, the situation at the moment has similarities to the moments before the 2007/2008.
George Soros made the prediction in January when the Global currency, commodity markets, and stocks were under fire in the fire week of the new year. The sinking yuan has also added more concerns about the future of the China’s economy as it shifts away from the manufacturing and investment based economy to a consumption and services-based economy. Read more at http://www.georgesoros.com/essays/
The latest economic woes have wiped out $2.5 trillion on the value of global equities this year by mid-January. Soros have attributed the problems affecting China to on significant adjustment problem on https://en.wikipedia.org/wiki/Soros_Fund_Management which apparently amounts to a crisis. A fair look at the financial markets according to Soros clearly shows the signs of what happened before the crisis of 2007/2008.
For these reasons, Soros has predicted that there is a high possibility of a 2008-like catastrophe. George Soros has made similar predictions before such as in September 2011 he said that Greece-born European debt crunch was far more severe than the crisis of 2008. He later turned out to be right when Greece was defaulting on its debt before the European Bank saved the country.
Soros is the current chairman of Soros Fund Management which gained 20 percent each year on average from 1969 to 2011. Currently, Soros is one of the richest people in the world with a net worth of about $27.3 billion according to Bloomberg Billionaires Index. Soros began his career in the 1950s after fleeing the communist war during the second world war and went to Britain where he graduated from the London School of Economics in 1952.
George Soros later moved to United States where he was employed in various firms including New York Firms of F.M. Mayer (1956-59) and Arnhold & S. Bleichroeder (1963-1973). In 1973, it was when he founded Soros Fund Management but retired in the late 1980s and started concentrating on philanthropy. George Soros is also famous for what happened in 1992 when he placed a bet of $10 billion on a single currency speculation and shorted the British pound. He later turned out to be right, and the Bank of England was forced to devalue the currency and exit the ERM. George Soros made $1 billion from the bet which made people call him “the man who broke the Bank of England.”