World’s Equity Markets In Peril Says George Soros
At a world economic forum in Colombo, Sri Lanka, George Soros spoke about his concerns that equity markets are returning to the same conditions that caused the deep recession of 2008. He notes that overall, equity markets have lost a total of $2.5 trillion and warns that this means the world economy is about to fail catastrophically. Soros has always been outspoken and a very busy activist in political matters of U.S. foreign policy. The market on politico.com events of the past year do seem to validate his concern.
“The Fear Gauge,” as the Chicago Board Options Exchange Volatility Index (VIX) is colloquially known, has popped up to a level 13 percent higher than at the same time last year. Other stock market indicators have also shown a fairly negative picture. Soros claims that the current market volatility is directly attributable to the loss of power in China’s currency. China is in crisis and their problem is becoming a world wide crisis, according to Soros. He says China’ instability is destabilizing all the equity markets. Therefore, he sees no way to return investing to consistently positive ROI. Part of the problem has been China’s phenomenal growth, causing the nation to become more consuming than exporting. This has caused a situation that George Soros sees being quite similar to the one in 2008, when Europe had a crisis after Greece became bankrupt. The result was a serious recession that took years for the EU to bail out of. It also affected all markets, world wide.
George Soros came from Cold War communist occupied Hungary. He was born there in 1930, only to be forced to endure the Nazi occupation of his native country during World War II. He was able to escape to the West in 1947. He migrated to the United States after spending time in England, where he graduated from the London School of Economics. George Soros has built a major fortune of over a quarter of a trillion dollars. All the while he has been quite active in many pursuits, all centered on freedom of the individual and promotion of civil rights in Eastern Block countries.
The Open Society Foundation (OSF) on Bloomberg was founded by Soros as an effort to increase political and economic education, promote freedom of democracy, and help with health issues. Even in advanced age, Soros continues to work for democratic freedom in those countries that still oppress their people. Here is the page for the Open Society Foundation.