One of the most successful hedge fund managers over the past fifty years has been George Soros. Due to his wise investment choices and significant amount of assets under management, Soros has amassed a very impressive net worth of over $25 billion. As the head of Soros Funds, George Soros has always had a strong pulse on the global economy. While he has often used his knowledge to make sound investment decisions, he has also used that information to warn the financial world about potential economic calamities.
During an interview conducted earlier on http://www.forbes.com/profile/george-soros/http://www.forbes.com/profile/george-soros/ this year Soros stated that he is very concerned about the current state of the economy and foresees a future decline in market values across the globe. He went as far as saying that he sees a lot of similarities between the current economic picture and that of 2008 when the US housing bubble burst and the entire world faced a credit crunch.
While the 2008 bubble was due to increases in US housing prices and their eventual rapid decline on http://www.nybooks.com/articles/2016/02/11/europe-verge-collapse-interview/, the current situation is more due to bubbles in China and other emerging markets across the globe. Over the past five years, much of the market gains across the globe have been due to increases in the Chinese stock market. Over the past 12 months, however, the Chinese economy has continued to slow and the stock markets have reacted. Other emerging markets in South America, Asia, and Eastern Europe have also seen a slowdown.
While the slowed growth in China is a concern, there are other issues affecting the global economy as well. Another significant issue is the credit crisis in Europe. Last summer Greece announced that it would likely default on its debt payments owed opt the EU. While the country was preparing to default, the EU and Greece were able to come to an agreement to renegotiate the debt payment. While there has been a temporary solution found, it is likely that this will be an issue in the immediate future as well with Greece and other countries in Europe struggling to stay solvent.
The oil markets are also providing a significant amount of concern for George Soros and other economists. Oil prices are less than half of what they once were, which is great for the average consumer, but has been devastating for countries dependent on oil. Countries in the Middle East that once were thriving are now facing insolvency. Due to the increased reliance on other forms of energy, it is not yet clear whether oil prices will ever rebound to where they once were.