Soros is wrong

Bob Bishop, a former chief investment officer at Soros Fund Management, believes that his ex-boss was wrong about China. Earlier, George Soros warned that the situation surrounding China's debt was bearing an "eerie resemblance" to the conditions in the United States leading to the financial crisis of 2007-2008. "Most of the money that banks are supplying is needed to keep bad debts and loss-making enterprises alive," Soros argued. The 2007-2008 recession in the US was "similarly fueled by credit growth and eventually unsustainable extension of credit," the billionaire investor said, noting that it could reach the turning point later than anybody expected. According to the latest data, the broadest measure of new credit funds in China came up to 2.34 trillion yuan in March, or 360 billion US dollars, which is significantly higher than the forecast of 1.4 trillion yuan. "China already had the crash," Bob Bishop said in an interview with Bloomberg. "It bottomed at the end of 2015. It's going to feel like a much better economy in China over the next two years than people seem to think it will be." According to the expert, one of the factors pointing to that conclusion is the recent surge in commodity prices as China is one of the world's leaders in terms of steel, copper, iron ore, and other metals imports. The price of iron ore more than doubled this year while copper added 6% in value.