Thursday, January 7, 2016

Soros: It's the 2008 crisis all over again

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The crisis of of 2016, more likely 2017, is merely a continuation of the 2008 crisis based on the escalation of debt default on a global scale. History has shown us the governments almost always default. That is, they never repaid what's promised.

The refinance game, the funding of existing debt through issuance of new debt as interest rates rise within core economies, will challenge the public's perception that "this time is different". The public's attraction towards anti-establish Presidential candidates suggests that at least at a subconscious level they understand 'something is wrong'. A growing inability to play the refinance game, outcomes that will generate tough questions and shake confidence, shows us how history repeats. History repeats because human behavior, that driven by instincts, is relative consistent and predictable over time.

Headline: Soros: It's the 2008 crisis all over again

Billionaire financier George Soros is warning of an impending financial markets crisis as investors around the world were roiled by turmoil in China trade for the second time this week.

Speaking at an economic forum in Sri Lanka's capital Colombo, he told an audience that China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, according to media. He added that a return to rising interest rates was proving difficult for the developing world.


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