George Soros is one of the best people in the world when it comes to making predictions on the economy. Over the past couple of years, he has been one of the most accurate people on the global economic environment. This is one of the biggest reasons that many people are unsettle by his latest prediction. George Soros has said that this year is shaping up to be a lot like 2008. Over a long period of time, this could have far reaching implications on the overall economy. In this article by Bloomberg, George Soros makes it pretty clear that there is a lot of weakness around the world when it comes to the economy. Here are some of his biggest reasons for being bearish on the overall economy.
China has long been a nice engine for growth on the world stage. However, there has been a lot of weak data coming out of China in recent months. If this trend continues, it could signal a slowdown in China that the world is not expecting. There are many areas of the world that are experiencing low rates of growth. However, if the developing nations of the world are not growing quickly there could be a lot more issues than we were expecting. The world markets tend to respond very negatively when there is an issue they are not aware of. The weakness coming out of China is something that really took a lot of people by surprise.
One of the biggest factors on the overall economy is the interest rates. This is essentially how much it costs to borrow money in the current economy. There is a theory that says the higher the interest rate, the slower the rate of growth will be in the economy over the long term. Anyone who is looking to make an impact in the economy can lower interest rates in an attempt to spur growth. However, low interest rates really punish the savers and those who have been trying to build up wealth. A low interest rate environment is difficult to invest in. Anyone who wants to try and earn a high rate of return in this environment is going to have a difficult time doing so.
George Soros has been known to make a lot of economic predictions over the years. He is one of the few people who simply do not care whether or not people believe what he has to say. In 2008, he was one of the few people who were saying there was a lot to worry about in the economy. Over the long term, many people tend to follow what he has to say when it comes to the economy. George Soros is someone who has a track record of success when it comes to making economic predictions. This is one of the biggest reasons that so many people are worried about what he has to say on the subject.