Soros Makes Dire Predictions for Economy

Over the past fifty years, George Soros has been one of the most successful investors in the world. George Soros is best known for running his own hedge fund, which has allowed him to accumulate a massive personal wealth in excess of $25 billion. While Soros is not as heavily involved with his hedge fund anymore, George Soros is still highly sought after when it comes to getting an opinion on the current state of the economy. 

Soros recently made some dire predictions that correlate the current state of the economy to what occurred in the 2008 economic collapse. Soros has stated that the biggest correlation between now and 2008 is that much of the global markets increase over the past few years has been tied to major bubbles. While the 2008 collapse was more due to a decline and burst of bubbles in the United States, the current state of the economy on is more due to issues in China and other areas of the world. 

During the early 2010s, much of the growth in the world economy was due to increases in the Chinese economy. The Chinese economy was growing at a record pace, which was leading to gains around the world. Unfortunately, in the past year the growth has slowed and stalled dramatically. This has led to a serious recession in China, which is now affecting the rest of the world. It still remains to be seen when the Chinese market can start to recover, but it does not seem that it will occur anytime soon. Other emerging markets in Asia and South American have had similar issues over the past year.

Another major factor affecting the global economy has been the credit crisis in the European Union. In 2015 the country of Greece came very close to defaulting on its debt payment. Over the course of a week, Greece announced that it would not make its debt payment, which the rest of the EU reacted negatively to. Fortunately, the EU and Greece were able to come to an agreement and the payment plan was renegotiated. Unfortunately, it is not yet clear if Greece and some other countries in Europe will be solvent in years to come


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