Friday, September 21, 2012

George Soros.  The Crash of 2008 and what it Means; the New Paradigm for Financial Markets.  2008-2009.

Introduction in the book:  Soros says that the US no longer functions on the traditional economic system, that the superboom of the past 25 has ended.  The financial markets do not reflect underlying realities.  What often emerges has distortions.  The distortions tend to impact the market prices.  Soros says he started his career with a strong background based on ideas of Karl Popper.  Soros forwarded a theory of reflexivity, that many dismissed.  His views led him to become a wealthy hedge fund manager.  Perception and reality strongly influence what takes place in the markets.  The prime example is seen with bubbles.  Soro calls the housing market a bubble, but he also speaks of a super bubble, far more complicated than the housing bubble. 

Soros interests me.  Almost every person I have spoken with has dismissed him, but the same people admit they have never read his ideas.  I'm the kind of person that must find out for myself.  In this introduction I see that Soros is rejecting the generally accepted notions of economics, claiming that too many variables are at play, and that a person must look at the economy on a deeper level to find clarity. 

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