Posted on 04/16/2010 4:59:50 AM PDT by TigerLikesRooster
Soros Warns of Market Crash
Thursday, April 15, 2010 10:58 AM
Railway porter-turned-billionaire financier George Soros delivered a stark warning that the financial world is on the wrong track and that it may be hurtling towards an even bigger boom and bust than in the credit crisis.
The man who broke the Bank of England (and who is still able to earn a cool $3.3 billion in a year) said the same strategy of borrowing and spending that had got us out of the Asian crisis could shunt the financial world towards another crisis unless tough lessons are learned.
Soros, who worked as a porter to pay for his studies at the London School of Economics after emigrating from Hungary, warned the financial world to heed the lesson that modern economics had got it wrong and that markets are not inherently stable.
The success in bailing out the system on the previous occasion led to a superbubble, except that in 2008 we used the same methods, he told a meeting hosted by The Economist at the City of Londons modern and impressive Haberdashers Hall.
Unless we learn the lessons, that markets are inherently unstable and that stability needs to the objective of public policy, we are facing a yet larger bubble.
We have added to the leverage by replacing private credit with sovereign credit and increasing national debt by a significant amount.
One crumb of comfort could be the 10-year period between the 1998 Asian crisis and the 2008 credit crisis. If the pattern is repeated, it should at least mean we have another eight years to go before the next crash.
What is comes down to, Mr Soros, is that you can either have markets or you can have public policy but the two are mutually exclusive.
We have added to the leverage by replacing private credit with sovereign credit and increasing national debt by a significant amount.
Keep smothering the fire with regulations and debt and eventually you will have a very stable and very cold pile of ashes. No Risks. No Benefits.
Jesus does NOT PLAY.
Must have been quite a punch...or have you been drinking some “spiked” punch with some “tazing juice” added to it?
The puppet master speaks.
Yep.. because he’s going to make sure it happens.
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