George Soros is someone to listen to because of the money that he has made in the market. In fact, he has made billions of dollars in the market. He is known for making bold predictions and for being more right than he is wrong. That is how he has gained a reputation that gives him a special reason to pay extra attention to what he has to say.
According to Marketwatch, Soros has stated that problems in the Chinese markets are a big part of what has him worried. He sees that the markets in that country have been behaving very wildly. There are a lot of stocks in the Chinese market that are plummeting at the moment, and the market has a whole has had to be halted multiple times just this week.
To have to use circuit breakers to stop the market means that something desperate has happened. The government does not like to halt trading when they can avoid doing so. Halting trading simply brings about more chaos over time, and that is certainly not something that anyone wants to have.
Aside from the start and stop nature of the halting of markets, China has other underlying problems that seem to have certain traders having a case of the jitters. The growth in China has slowed incredibly. There were years recently when growth in China was between 7 and 9 percent annually. Now, there are whispers that the growth rate for the year in China may well be zero percent. It is troubling investors and it should.
Not everything parallels the 2008 markets of course. It would be rather difficult to find a perfect correlation like that, but there are reasons to be worried. 2008 saw problems with the housing markets that caused a near collapse of the entire system. Today, we are seeing problems with China and there are still lingering debt problems in Greece as well.
The Greek debt issue is something that Soros says that may be an even bigger problem than the whole issue in China. He feels that a lot of people have taken the Greek issue off the table in their minds, but it is far from over. If the issue starts to spread into other markets in the region or in the world, then the overall stock market situation could be dramatically worse than it is today. There are reasons to be worried about a 2008 style market say George Soros and many others.