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Ann Nolan

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Will 2016 Crash like 2008? George Soros Predicts.

2008 saw the US stock market crash after excessive risk taking caused the crash of market-backed mortgage securities. That led to a serious economic depression which the US is only now climbing out of. According to Marketwatch, for several years, market levels and interest rates in the United States were at ultralow levels and they are now being normalized. In other parts of the globe, those policies are being relaxed.

According to Marketwatch, China has been at the center of market-related anxiety since its market plummeted in August. Global currency, stock, and commodities markets have all fallen since the start of the new year, according to a Bloomberg article. Combined with a yuan that’s been devalued, it all adds to concern about China’s economy. The economy is making a shift from manufacturing toward consumption and services. That shift, according to George Soros, is tantamount to a crisis.

Billionaire George Soros predicts on Bloomberg warns us that 2016 will lead to a market disaster like 2008. He believes that China’s struggle to find a new growth and development model will affect the rest of the world. The challenges China is facing are reminiscent of the challenges the USA faced in 2008. China has tried to stimulate the economy by cutting interest rates and pumping money into the economy, but the economy remains weak.

Everything has been affected. Oil prices remain low and are dropping to the lowest levels seen since the early 2000s. Both the US and London had the worst opening day since 2008. Trading plummeted fast, tripping the circuit breaker installed on the Chinese trading system. The Chinese said that they would uninstall the economic circuit breaker. George Soros sees parallels between the economic conditions now and those that set up the 2008 global succession. An Economist article points out that the question is mostly whether 2008 is the right parallel; a similar situation happened in 1998 as well, but Western countries managed to recover. However, developing countries are a lot more important now than they were then. Whether the situation is more like 1998 or 2008, China is facing economic difficulties. Time will tell how much that affects the rest of the world and whether George Soros is right.

Corporate Law Vs Commercial Law

Corporate law deals with the operations of a firm, the shareholders’ rights, responsibilities of the management, and any other issue relating to corporations. The law itself view the corporations as separate entities from their owners. Consequently, the corporations have the rights to file a lawsuit, sign contracts among others. On the other hand, as the shareholders, the owners have specific rights, which are protected by the corporate law. For instance, the managing directors of a corporation make decision regarding distribution of dividends. A dividend refers to any profit shared amongst the shareholders of a corporation. The corporation owners have the right to the dividends. In the event that the corporation fails to authorize distribution of the dividends to the shareholders, the latter is at will to sue the corporation in question.

Commercial Law

Commercial law concerns the interactions between a third party such as license agreements, terms and conditions, reseller agreements among others and a company. It covers a broad scope of law such as taxes, contracts, employment law, and business transactions. The best way to differentiate corporate and commercial law is viewing business as an activity, which involves selling and buying of products, services and a broad array of other profit –based activities. Corporate law deals with activities of a corporation and ignores the rest.

The Role of Commercial and Corporate Law

Both commercial and corporate law creates a legal framework within which all transactions must conform. The law relate to the companies and bankruptcy, contracts, securities, finance, banking, and financial service regulation. At undergraduate level, the students are taught how the activities of corporations affect lives of the citizens. In addition, they are equipped with legal knowledge in practical set of regulatory and commercial context. The course prepares the students with knowledge, skills, and insights needed to practice efficiently in business litigation as well as bankruptcy.

In the recent years, the business world has been punctuated with globalization of trade, emergence of new markets, trade convergences, and increased trans-boarder, thanks to the growing technological knowledge. The use of the internet in marketing and promotion of corporation products has brought up a new breed of criminal activities. Some companies or individuals have grown the tendency to break the commercial and business law during transactions.

Nevertheless, there is no cause for alarm. Commercial and corporate lawyers such as Frans Schoeman help victims on slideshare of such fraudulent transactions. Frans Schoeman ensures both businesses people and clients adhere to ethical and legal frameworks of business transactions whether online or via the corporations’ sales departments. Mr. Schoeman is a law graduate from the University of the Free State. He has broad experience in commercial and corporate law, and has represented and won numerous cases on the same. Currently, he works as the legal director in Phatsima Diamond, a law firm based in Belleville, South Africa. He has skills such as corporate governance, legal wring, due diligence, commercial litigation, mergers and acquisitions, dispute resolution and many more, which he applies to ensure the cases are ruled favorably to his clients.