Category Archives: Current Market

George Soros Hints on Global Market Deadlock Similar to the 2008 Crisis

The write-down in China’s exchange value is influencing the rest of the world negatively. George Soros said this in an economic forum in Sri Lanka and hinted that investors should be careful with the deadlock in global markets. For the developing world, a return to positive interest rates is a dilemma.
Shifting away from investment and manufacturing to consumption and services, China is struggling to create a new growth model due to Yuan’s convertibility. Comparing the crisis to the one in 2008, George Soros warned that global currency, commodity markets and stock were under pressure in the first week of 2016. There was a reduction of $2.5 trillion in the value of global equities as losses increased in Asia.
In addition, referring back to 2008, George pointed out that financial markets are in trouble and that China has a problem of swimming with the tide. In September, 2011 in Washington, the hedge fund billionaire also cautioned that the Greece-born European debt dilemma surpassed the crisis in 2008. George Soros, who began his career in New York City in 1950s, is a hedge fund billionaire who gained his fame in 1992 when his net worth hit $ 1 billion.
This year, there is escalation in volatility readings. The fear gauge or the VIX, which is the Chicago Board Options Exchange Volatility Index, has increased by 13% while Merrill Lynch index of anticipated price change in treasury bond went up by 5.7%. The Japanese’s Nikkei Stock Average Volatility Index also shot up by 43%.
The wavering manufacturing sector is explained by the reduced interest rates by the People’s Bank of China, which results to weaknesses in the world’s second-largest economy. However, China’s Communist Party has promised to increase the Yuan’s convertibility by the year 2020. This information was reported on Bloomberg as seen the following link http://www.bloomberg.com/news/articles/2016-01-07/global-markets-at-the-beginning-of-a-crisis-george-soros-says
George Soros is not only an investment guru but also a philanthropist. His philanthropic nature saw him establish Open Society in 1979, which entails foundations, partners and projects in more than 100 countries. He started giving scholarships to black students in South Africa.
The Chairman and Founder of Open Society also provided Xerox machines to copy banned texts and supported cultural exchanges to undermine Communism in the East Bloc. Paralegals and lawyers who were unlawfully detained benefited from George Soros’ big heart. Another deed was bringing the Roma people of Europe into the limelight. This information was mentioned on Open Society Foundation website as posited in the following link https://www.opensocietyfoundations.org/people/george-soro
The famous hedge fund billionaire is also an author whose publications are chart-topping. Some of the books he wrote are The Tragedy of European Union, The Crash of 2008 and What it means, The age of Fallibility, Open Society, The Bubble of American Supremacy and The Alchemy of Finance among many others. This information was published on georgesoros.com as outlined in the link below http://www.georgesoros.com/books/