Billionaire George Soros warns the world on Bloomberg that the global economy is facing a challenge not unlike the one faced some years ago, in 2008. As such, global investors have to be much more cautious than usual. In particular, warns Soros, the problems faced by China’s economy is having a major impact on the rest of the world. The decline of the Chinese economy and currency is causing world markets to crash, and unless something is done, there is a very large possibility of the same thing that happened in 2008 happening again.
The chinese yuan has been rapidly declining, and lately, there has been a major decline in Chines equities. China has recently had their shortest market day ever, a mere thirty minutes, before it crashed.
George Soros says that he sees many similarities between the situation today and the situation that was was eight years ago. Analysts point out that as soon as China’s economy and stock markets decline or crash, the stock markets of the rest of the world, including those on Wall Street, go down as well.
As reported by Bloomberg, this is not the first time that Soros has warned of a global economic catastrophe. In 2011, he has said that the problems faced by Europe’s economy, and in particular, Greek’s economy, is even worse an the crash of 2008.
Soros himself is a multi-billionare who has an estimated net worth of over twenty seven billion dollars. He is founder of the Soros Fund Management and the Open Society foundation.He was born in Budapest, Hungary in 1930, and after surviving the Nazi occupation of Hungary, he fled the communist occupation of Hungary and went on to become one of the richest men in the world. He is a known philanthropist who supports many worthy causes and is the author of many books.