Similar 2008 Global Markets Crisis Seen by Soros

 
Billionaire George Soros on Thursday warned investors there need to be very cautious as the global markets were facing acrisis. George said this while speaking at the economic forum.
China is currently getting it hard trying to get new growth model with it constantlybeing devaluedand transferring its problems to the entire markets in the world. The developing countries will definitely get it much tougher to return to the positive interest rates. Soros also revealed that the current environment had lots of similarities to the 2008 situation.
The stock, commodity and the global currency are currently under fire in the first week of the New Year. To worsen the situation, the sinking yuan has added concern about China’s economy strength as it moves away from the manufacturing and the investment towards services and consumption. Up to $ 2.5 trillion were removed from the global equities value during the year through to Wednesday with losses increasing this Thursday in Asia as a further plunge in the Chinese equities stopped the trade for the rest of the day.
George Soros also said that China was having a major adjustment problem which can easily amount to a crisis. “There is a severe challenge whenever I look into the financial market which reminds me of the 2008 crisis,” said George.
Soros had earlier warned of 2008 as acrisis. When on a panel back in September 2011 in Washington, Soros claimed that the Greece-born European debt crunch was worse than the 2008 crisis.
Soros company hedge fund had amassed approximately 20 percent yearly on average from 1969 to 2011 and had a net worth of around $27.3 billion. This is according to the Bloomberg billionaires Index.
The Chinese Commitment Party has promised to ensure the yuan’s convertibility is increased by 2020 and to slowly have the capital controls dismantled. However, the weakness in the world’s second-largest economy has remained even after the People’s Bank of China reduced the interest rates to its record lows.
George Soros kicked off his career when he founded the Soros Fund Management in New York in the 1950’s where he received lots of praise for his investing prowess by netting a total of $ billion just in a bet which the United Kingdom were forced to have the pound devalued.
Soros had remained to be an active philanthropist since 1979 when he started raising funds to assist the black students to join Cape Town University during the apartheid period in South Africa.

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