Global Markets To Remain Volatile In The Eyes Of George Soros

The financial markets of the world could be heading for a repeat of the 2008 economic slowdown if serious issues are not addressed as a matter of urgency, claims hedge fund icon George Soros. Over the course of his career Soros has brought his personal fortune up to around $23 billion in total through a hedge fund averaging 20 percent growth each year during the course of its operation. Bloomberg Business reports an economic conference in Colombo, Sri Lanka was the site of an interview by Bloomberg held with George Soros, in which he explained his belief that the conditions in the world were replicating those leading to the 2008 economic slowdown.

George Soros believes the global markets are moving towards another crisis similar to that seen in 2008 after various problems were seen in the Chinese and European economies over recent years. Born in Hungary, George Soros believes eastern Europe could hold the key to the entire collapse of the Euro zone single currency. Ukraine and Greece are already seeing issues with debts, but a failing Ukraine fills Soros with dread over the possibilities of a rising Russian nation forcing its way into mainland Europe. Soros himself has seen the issues facing Europe after his own Open Society Foundations was barred from working in Russia after being identified as a security threat, CNBC reports.

The major problems facing the world have been identified by George Soros as coming from China, including the failure of the nation to cope with the changes being seen in their economy. The success of the Chinese economy was largely based upon the manufacturing and investment sectors, but in recent times the economy has been shifting to a more service and consumption based market. Soros believes Chinese officials have not handled the changes to their economy in the correct way with large amounts of currency flooding the market, and lower interest rates than have been seen in living memory. The many different trade agreements the Chinese government have established with countries around the world mean the problems seen in the economy will cause a ripple effect throughout the world, which the hedge fund legend believes could see major issues if China continues to struggle.