George Soros and the Economy

Overview

George Soros has a track record of success when it comes to predicting future economic events. Over the long term, few people have as much success in predicting economic events as George Soros. In a recent article for Bloomberg, George Soros says that he is expecting to see a fall in the markets. In his opinion, the market conditions are much like that of 2008. There are many different reasons why he is bearish on the overall world economy. This is important information for anyone who wants to look at their future investments based off of these decisions. Here are some of the most common reasons that George Soros is somewhat bearish on the world markets.

Jobs

Although there have been a lot of jobs created since 2008, many of the jobs being created are lower paying jobs. Over the long term, it is important for people to have organic wage growth through a variety of different means. There are many people who have graduated from college that are working in jobs that do not require a college degree. This can have a lot of negative effects on an economy over the long term. It will be interesting to see if the job market rebounds or if the jobs that continue to be created are those that are low paying. Anyone who is looking to make an impact in this area needs to make sure they are getting higher paying jobs.

Interest Rates

A low interest rate environment is designed to spur investments in many different areas of the economy. Although low interest rates are good for borrowing money, it is not good for people who are savers. It is difficult to save enough money to get by if you are not getting a high interest rate. There are many people who expect that the economy will not be as strong once the interest rates rebound. George Soros believes that this is one of the biggest areas of potential weakness in the overall economy. When interest rates do go up again, there are many people who believe there will be issues with how many people react. There are certain industries that are much more sensitive to interest rates than others. These include things like banking and housing. When interest rates go up quickly, these industries tend to suffer.

George Soros

George Soros has one of the most extensive careers of anyone who is in finance. There are few people who can stack up to his career success in different areas. Over the long term, there are many people who have looked up to what he has to say when it comes to the economy. There are many reasons outlined here that George Soros feels like the current economy is not one that respects savers and investors. With the interest rates in the economy about to go up again, there are many people who agree with George Soros that there will be growing pains here.

Read more: http://www.forbes.com/profile/george-soros/