George Soros Hits Headlines Once Again

A philanthropic economist has hit the headlines once again. George Soros of Budapest origin in Hungary has another prediction. He studied as a foreigner at London School of Economics and specifically in the field of philosophy. Soros became one of the wealthiest people in the world with a net worth of about twenty eight billion dollars. His career path started in the New York City in 1950s and later became an expert in investments. He acquired vast experience in matters economics and he became a prowess in investment decisions. He once made a remarkable bet with sterling pound when the UK economy was on recession. He held his pounds and when the pound was devalued he made a profit of more than one billion dollars. With his several predictions that ended correct, his words are not to be taken lightly by investors.

In 2008 he predicted the worst economic crisis to have ever been experienced. He analyzed the Debt-GDP ratio and warned investors over impending danger on investments. At that time the US economy was on the verge of collapsing and the effects spread to the rest of the world. The economist at that time called the scenario ‘house bubble’. The financial banks in the US lowered the lending rates to aid citizens in acquiring houses. The situation increased the money in circulation. This situation escalated and with time it became uncontrollable. The economic policy makers decided to devalue the US currency and being the largest economic hub in the world the economic downturn spread to other countries.

Later in the year 2011 George Soros predicted on The Street the European financial crisis. Europe had a lot of debt from Greece. It is with a reason that his current prediction made in economic forum in Sri-Lanka ought to be taken seriously by investors. This is depicted by the current economic situation facing China. It is similar to the one that happened in the US in 2008. The Chinese debt is very high as compared to its Gross Domestic Product. Its measure to mitigate this problem by devaluating its currency is spilling to the rest of the countries. Other markets such as stock and commodity markets are at a risk of losing value. This is brought by the shift from investment and manufacturing to consumption and services as a policy to curb China’s crisis.

Therefore investors should take caution while making investment decisions as George Soros said on Street Television. For more information on George Soros Street please visit