Current Global Markets Crisis Reminds Billionaire George Soros of 2008

While speaking at an economic forum in Sri Lanka, George Soros noted that the global markets are facing a crisis and called for investors to be cautious. He noted that China was struggling to create a new growth model and the devaluation of its currency was creating problems globally. Soros said that the present events were similar to 2008 with the developing countries finding it hard to return to positive interest rates.
The commodity, stock, and global currency markets were hard hit in the first week of 2016. In addition, the sinking Yuan raised more concerns on the strength of the Chinese economy as it transitioned from manufacturing and investment to services and consumption. George Soros pointed out that China is facing a huge adjustment problem. Additionally, he said that when he looks at the financial markets, a serious challenge exists and this situation reminds him of the 2008 financial crisis. In 2011, Soros warned of a 2008 like disaster when he claimed the European debt crunch caused by Greece was serious than the 2008 crisis. It is the second time he is giving such a warning.
From 1969 to 2011, Soros’ hedge fund company gained a 20% yearly average. The Bloomberg Billionaires Index put his net worth at $27.3 billion. Soros commenced his career in New York in the 1950s. In 1992, Soros netted $1 billion by betting that the UK would devalue the pound. Over the years, Soros has built a reputation from his investing prowess.
This year, the measures of volatility are on the rise. The VIX and Nikkei Stock Average Volatility Index are up by 13% and 43% respectively. Merrill Lynch index that anticipates price swings on Treasury bonds surged by 5.7%. China’s Communist Party has assured that it will dismantle capital controls by 2020 as well as increasing the Yuan’s convertibility. The People’s Bank of China has reduced the interest rates immensely and the authorities have poured billions of dollars into the economy but weaknesses still exist. This information was mentioned on Bloomberg as highlighted in the following link
Soros is the chairman of Open Society, a network of foundations that partners and runs projects in over 100 countries. He is devoted to the idea of an open society, where the government is accountable, rights are respected and no entity has the monopoly of truth. This makes the foundation different from other philanthropic endeavors. Soros started philanthropic activities by giving scholarships to black students in South Africa in 1979. Over the years, he has supported many initiatives that include creating an international system to bring accountability and transparency to industries extracting natural resources. This information was originally mentioned on Open Society Foundation website as posited in the link below
Soros’ success as a hedge fund manager enabled him to actualize his ambition of turning authoritarian forms of governments to open societies. He once wrote that his success in the markets provided him with a degree of freedom that many people lack. This independence allows or obliges him to take a position even on controversial matters. This information was reported on outlined in the following link

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