Friday, May 23, 2008

The New Paradigm For Financial Markets

PBS: Interview with George Soros

As the U.S. grapples with an economic slowdown and a housing slump, financial leaders are rethinking their strategies. Financier and author George Soros reflects on the changing business trends and details his new book, which examines the 'credit crash' of 2008.
GEORGE SOROS: "I think this is the most serious crisis of our lifetime. It's not just a housing crisis, but a crisis of the financial system. There's been a super-bubble growing over the last 25 years at least, which basically consisted of an extension in credit, increasing use of leverage. ... You have to regulate not only the money supply, but you also have to regulate credit conditions. ... It is the Federal Reserve's job to prevent bubbles from happening. ... Also I think oil is in a bubble."

Posted by drewster @ 11:51 AM (663 views) Add Comment

10 Comments

1. sold 2 rent 1 said...

"You have to regulate not only the money supply, but you also have to regulate credit conditions"

Quick let's get this policy implemented ASAP.
Why was US M3 abolished?
Orchistrated BOOM. Orchistrated BUST.

George "Bilderberg" Soros
http://911review.org/Sept11Wiki/Soros,George.shtml

Friday, May 23, 2008 12:31PM Report Comment
 

2. housebear said...

Can any one tell me how long it takes to add a news artical to the blog?
My coments apear instantly, should it be the same for the addition of a news artical?
I am long time veiwer of HPC, but just starting to take part in the discusions.

Friday, May 23, 2008 12:58PM Report Comment
 

3. sold 2 rent 1 said...

Are you using your password in both cases?

Friday, May 23, 2008 01:11PM Report Comment
 

4. last_days_of_disco said...

Anyone who interviews George Soros must expect to be led down the garden path. The dude didn't become rich by being stupid.

He is the biggest VI of the lot.

Friday, May 23, 2008 01:11PM Report Comment
 

5. housebear said...

sold 2 rent 1 said Are you using your password in both cases?

Yes

Friday, May 23, 2008 01:15PM Report Comment
 

6. hpwatcher said...

He is the biggest VI of the lot.

Yes, but he has the vanity of a man wanting to be seen to be right....like most of us on here.

Friday, May 23, 2008 01:27PM Report Comment
 

7. drewster said...

@disco - So when "the biggest VI of the lot" says oil prices are in a bubble, is he telling the truth or lying?

Friday, May 23, 2008 01:45PM Report Comment
 

8. dude said...

So oil's a bubble. How's that work then? I can see how oil would be pretty inelastic -- you have to buy the stuff if you want to get to work. And demand will change as the price rises -- you use your car less, look to buy a hybrid car the next time you want to change it, etc. The same goes for other oil uses.

But surely it's still supply and demand. As long as the demand continues the price will remain high, unless they can increase supply. I can see how supply and demand will inflate the price, but I can't see how the price will come down again unless supply magically massively increases. Or is the view that OPEC (ie mainly Saudi Arabia) is deliberately keeping the supply down, and they really do have the resources to push it higher?

It's not like you are talking about a fixed asset, such as a house. Consumption of oil is a given. So can the oil price be a bubble?

Friday, May 23, 2008 02:14PM Report Comment
 

9. bystander said...

dude. The supply and demand stuff will become true, but that doesn't explain jumps of 5 dollars in a few hours, that is driven by speculation. The HPI was driven by the supply and demand line and that has been proven to be massaged statistics. Will the same be proven of oil, gold, rice etc. IMHO speculation and funds/banks protecting their profit margins and using all this lovely cheap bailout money to build market share etc, has and is causing the spike in oil and other soft/hard commodities and this speculative greed is having a detrimental effect, lif and death, on the poorest. We in the West might be paying more for our fuel and food, but at leats we have access to both, the poorest now have access to neither, something needs to be done to regulate bubbles even if that means we are all a little poorer for it.

Friday, May 23, 2008 02:32PM Report Comment
 

10. dude said...

@bystander

Ah thanks for the explanation. And there's me thinking oil bourses are like petrol stations: you pulls up, buys your oil and buggers off. I forgot about the petrol attendant (like they used to have when I was young) taking your money and giving you the change.

Friday, May 23, 2008 03:24PM Report Comment
 

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