Soros Likens China’s Economy with US Leading Up to 2008 Crash

Billionaire financier George Soros has warned that China’s debt-fueled growth is bearing an “eerie resemblance” to the conditions leading up to the 2008 financial crash.

“It’s similarly fueled by credit growth and eventually unsustainable extension of credit. But it feeds on itself, and it has a lot to do with real estate,” he said at an Asia Society roundtable in New York late Wednesday.

“Of course since it feeds on itself, it can reach the turning point later than anybody expects. This happened in America where, you know, 2005/2006 a lot of people like (former chairman of the Federal Reserve) Paul Volcker saw it coming, but it went on to 2007/2008.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza