George Soros is one of the most well-known individuals in the world of finance. Over the years, he has made a lot of predictions on the future of the economy. In this latest article by Bloomberg, George Soros says that the world economy has a lot of negative signs. Much like in 2008, there are a lot of weaknesses in the current economic market that are difficult to get through. This has a lot of people worried about the future of the markets as a whole. Over the long term, George Soros has proven to be right a lot more often than he is wrong. Here are several reasons for his latest prediction.
There is a lot of weakness coming out of China right now. There are a lot of people who thought that China would continue on an upward trend for the rest of the year. However, there are a lot of data points showing that this is not the case. There have even been times when the Chinese have had to turn off their stock market because it dropped too low. This is concerning for both the Chinese and people who invest in the global markets. Over a long period of time, China is a nation that is essential to the global growth story. If there is a long term slowdown in the country, this could lead to a lot of problems down the road.
Global debt levels are starting to creep back up towards the levels in 2008. At that time, personal debt levels were at their highest in history. There are many people who carry so much debt that it is hard for them to save any money. While this is good for consumer spending in the short term, over the long term this is a major issue. A good economy is fueled by people who have the money to buy and invest in the market and goods that are produced. Carrying a lot of debt is something that prevents prosperity for many people. In addition, many nations around the world continue to borrow money at record levels. Anyone who wants to know how to get out of debt can find information on a variety of sources. George Soros cites this as one of his biggest reasons for being bearish on the new year.
There are many people who are concerned with the latest prediction by George Soros. Over the years, he has never been afraid to speak his mind when it comes to the economy. There are many people who invest in the global markets based on what George Soros says and believes. Anyone who is interested in learning more can read the whole article on Bloomberg. This is a big wake up call for many people who invest in the markets. There are also many people wondering aloud if they can survive another economic downturn like the one we had in 2008.