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.”