Results for category "Economics"

Soros Makes Frightening Prediction About Current Market Conditions

George Soros considers himself to be a serious man. As a hedge fund manager, Soros has to be honest and accurate in his assessment. Making outlandish predictions that are not rooted in reality would undermine his credibility. On financial matters, Soros does have a lot of credibility. This is why a recent prediction he made on Bloomberg news should be cause for alarm. Soros feels the global markets are on the edge of a major crisis.

The Bloomberg article reported on comments Soros made at an economic forum in Sri Lanka. To a large extent on, Soros noted that problems with China’s stock market and currency are likely to have a large ripple effect through the world.

In very early 2016, China’s yuan saw a major drop in value. The overall economy of China took a massive hit as well. The aforementioned ripple effect yielded losses in the neighborhood of $2.5 trillion. That is an enormous amount of wealth wiped out overnight.

Economies of the world are intertwined. When troubles arise in an economy as large as China, those problems are felt elsewhere. All major countries have significant investments in China. When the Chinese economy tumbles, all those components of the European Union and the United States are pulled in with it. Then again, they are not really pulled in. They are already there.

George Soros has issued serious warnings in the past. The near-catastrophe with the Greek exit from the EU was something he raised alarm bells about. Greece’s exit from the EU would have been very harmful economically since the exit was connected to a potential collapse of the Greek economy. As recent history shows, Greece did not suffer a meltdown. Soros does feel that more problems with Greece are likely to emerge in time. The country never truly addressed its dire situation.

Soros spends a lot of his time and effort in philanthropic causes these days, but he has not totally removed himself from discussions surrounding economic matters. His opinions on such things as China continue to carry weight.

The Powerhouses of Economics: a Spotlight on Christian Broda and Eswar Prasad

With the recent headlines regarding the Greek financial crisis, it’s not uncommon to experience a resurgence of economic fear in the United States. Since the economic crisis of 2008 – commonly referred to as the ‘Great Recession’- any headline that even mentions the U.S. economy can bring about a moment of panic. But fear not, two notable economists offer reassurance.

The current debate among economists revolves around the future of the United States dollar. While some economists paint a drab future for the currency, two powerhouses of the economic community, Dr. Christian Broda of wikipedia and Dr. Eswar Prasad, make it clear that the dollar isn’t going anywhere.

In Prasad’s book, “The Dollar Trap”, the Cornell University professor doesn’t claim that the U.S. dollar is indestructible, but he does press that it’s solid in its place atop the world currency. Prasad, who received his doctorate’s degree from the University of Chicago, has served as head of the research department at the International Monetary Fund. Although he does face some opposition, Prasad is not alone in his monetary declaration.

Broda, who shares Prasad’s sentiments regarding the U.S.’s currency, is a bit of a rock-star in the economic community. Broda bridges the gap between Wall Street and academia, choosing to spend many years working as both a hedge fund manager and an economics professor. From publishing his research in academic journals like the American Economic Review to writing editorials for the Wall Street Journal, Broda is well schooled in the topic of economics. Going beyond scholarship, he takes his developed concepts and puts them to practice as the Managing Director of Duquesne Capital Management.

His expertise doesn’t end there. Broda is also a former professor of economics at the University of Chicago, and a graduate of Massachusetts Institute of Technology, receiving both his master’s degree and his doctorate’s degree from the institution. He’s well known in the world of economic professionals, as well as academia, for his many scholarly publications, including the article “Prices, Poverty and Inequality”, which was a joint effort with David Weinstein.

Based on credentials alone, Prasad and Broda’s reassurances should be enough to put the minds of any worried Americans to rest.