George Soros has made another prediction on the overall economy. According to this Bloomberg article, George Soros says that the market conditions right now are very similar to 2008. This is a cause for fear for many people simply because George Soros was right the last time he made this prediction. He was one of the only people at that time before the crash of 2008 to say that the economy was starting to contract. Here are several reasons why 2016 is really similar to 2008 and some ways it is different.
Stronger Jobs Market
Perhaps the biggest difference between 2016 and 2008 is the fact that the job market is much stronger now. During that time, there were tens of thousands of jobs being lost every week. However, today the unemployment rate is one of the lowest we have seen in quite some time. This is an essential aspect of looking at the overall economy. Anyone who is looking to make an impact on the economy needs to look at the jobs market in general. There are many people who have been able to improve their economic position by landing a better job. However, there are also many people who say the jobs being created are low paying jobs. It will be interesting to see if the relative strength in the jobs market continues over the next couple of years.
More National Debt
The national debt of nations around the world is higher than it was just a couple of years ago. Almost without exception, nations around the world continue to borrow money at exceedingly higher rates. Anyone who is looking for reasons to be worried about the future of the economy can look to this as a cause for concern. No matter what happens in the economy, one day this debt will have to be paid back. The nations who have an extremely high debt load relative to GDP will be hard pressed to see this growth continue.
George Soros has been known over the years to make predictions on the economy. He has many decades of experience in looking at financial markets and being able to see through all of the variables that impact the economy. Over the long term, George Soros has proven that he has a solid track record of success when it comes to predicting economic events. Anyone who wants to follow his impact can see various examples in history. If you are someone who is worried about another major economic event, it is vital for you to understand where he is coming from. George Soros sees the current economic environment as one that is really similar to 2008. There were few people who were saying that a major economic event was coming in 2008 much like now. Although this is no reason to panic, there has been a lot of relative weakness in places like China. Only time will tell if George Soros is correct in his prediction.