Connect with us

Hi, what are you looking for?

Jewish Business News


China Crash? Soros says China Credit Situation Resembles US in 2008

“It’s a warning sign because it shows how much more credit is needed to stop a decline, ” Soros said, commenting on the March credit data.


Speaking on the topic of China at the Asia Society Roundtable, billionaire financier George Soros warns that China’s debt-fueled growth is bears “eerie resemblance” to conditions preceded 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, ” said Soros.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

“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.”

Soros said that most of the danger at a precipice is when the credit cycle reaches the point where “more and more credit is needed to sustain growth.”

“(China) re-lit the furnaces. They also induced a construction boom and real estate boom. It is a bubble but it can grow and it can feed on itself. And markets are not infallible and they buy into it and of course that is another factor that makes it grow, ” he added.

“(Stimulus) can buy you additional time but it makes the problem that much bigger. That’s where we are.”

According to Reuters,  Chinese banks made $211.23 billion in new local-currency loans in March. They also noted that social financing rose to 2.34 trillion yuan ($360.78 billion) in March from 780.2 billion yuan in February as the China’s central bank tries to stimulate the economy to halt slowing growth.

 “It’s a warning sign because it shows how much more credit is needed to stop a decline, ” Soros said, commenting on the March credit data.


This article was first published at Branding In Asia, by Ellis Wu



READ MORE: George Soros


After Donald Trump’s rally in Chicago, Illinois, was cancelled, one organisation took responsibility:, a community of more than 8 million liberal Americans, sent an email out to all their members explaining More…


George Soros

Important progress was made at the donors’ conference for Syrian refugees convened in London on Feb. 4. But much more remains to be done. The international community is still vastly underestimating what is needed More…


George Soros Is Worried About This China’s state media has warned billionaire investorGeorge Soros against betting on falls in the value of the Chinese yuan (CNY) and the Hong Kong dollar (HKD), amid widespread More…

George Soros / Getty

The following is a revised version of an interview between George Soros and Gregor Peter Schmitz of the German magazine WirtschaftsWoche. Gregor Peter Schmitz: When Time put German Chancellor Angela Merkel More…

Annual Fall Meetings Of The IMF and World Bank

Global markets are facing a crisis similar to the global financial crisis in 2008, and investors need to be very cautious, billionaire George Soros told an economic forum in Sri Lanka on Thursday. Soros More…


George Soros, a billionaire Democratic donor, told a close Hillary Clinton ally that he regretted supporting President Obama over her in the 2008 Democratic primary, according to an email released Thursday by More…



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.