| The New Paradigm for Financial Markets: The Credit Crash of 2008 and What It Means | 
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Avg. Customer Rating:   (based on 30 reviews)
Sales Rank: 261
Category: Book
Author: George Soros
Publisher: PublicAffairs
Studio: PublicAffairs
Manufacturer: PublicAffairs
Label: PublicAffairs
Media: Hardcover
Number Of Items: 1
Pages: 208
Shipping Weight (lbs): 0.7
Dimensions (in): 7.7 x 5.2 x 0.8
ISBN: 1586486837
Dewey Decimal Number: 332.0973
EAN: 9781586486839
ASIN: 1586486837
Publication Date: May 5, 2008
Availability: Usually ships in 1-2 business days
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Product Description
In the midst of the most serious financial upheaval since the Great Depression, legendary financier George Soros explores the origins of the crisis and its implications for the future. Soros, whose breadth of experience in financial markets is unrivaled, places the current crisis in the context of decades of study of how individuals and institutions handle the boom and bust cycles that now dominate global economic activity. “This is the worst financial crisis since the 1930s,” writes Soros in characterizing the scale of financial distress spreading across Wall Street and other financial centers around the world. In a concise essay that combines practical insight with philosophical depth, Soros makes an invaluable contribution to our understanding of the great credit crisis and its implications for our nation and the world.
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| Customer Reviews: Read 25 more reviews...
 Putting Limits on Leverage July 20, 2008
George Soros thinks that the current credit crunch is the most severe financial crisis since the 1930s and that it marks the end of an era of credit expansion based on the dollar. In this book he argues that a new paradigm is urgently needed to better understand what is going on. The paradigm used until now by most economists was based on false premises.
The existing paradigm, often referred to as free-market fundamentalism, holds that markets are self-correcting, that they naturally tend toward equilibrium. Economists as far back as Adam Smith have argued against regulation or government intervention of any kind since it would interfere with the natural forces of the market.
Soros correctly argues the contrary. In fact government intervention has repeatedly saved the market. A few examples are the bankruptcy of Continental Illinois in 1984, or the failure of Long Term Capital Management in 1998, or the current bolstering of Fannie Mae and Freddie Mac (my example). The notion that the market deviates from an orderly path is the rule rather than the exception.
The new paradigm that is needed, according to Soros, must incorporate the theory of reflexity. Developed in previous works by himself and his mentor Karl Popper, reflexivity examines the relationship between thinking and reality, between the cognitive function and the manipulative function. In the investment world, this means that when investors are bullish on, say, housing or mortgage backed securities their values go up, not because they become intrinsically more valuable, but because everyone else is thinking they are more valuable. This is basically old-fashioned market psychology dressed-up in theory. The mechanism that allows the market to go up is self-reinforcing but ultimately self-defeating. The market goes from euphoria to despair overshooting the top, and ultimately the bottom too. Witness today's housing market.
We are currently experiencing the consequences of unregulated credit markets and Soros argues that if more is not done the crisis could get much worse. He points out that moneterist doctrine in inadequate. Controlling the money supply is only half of the picture. The internet bubble, the housing bubble, and the current commodities bubble were created through excessive use of leverage. The amount of debt currently outstanding is unprecedented. Any new financial regulations will need to temper the use of credit to avoid future bubbles.
Soros argues that the US must come to grips with the new realities if it is to maintain its preeminent position in the world. If we are not careful the dollar will lose its standing as the reserve currency of choice. The task of regulating credit will now became even more precarious since the credit market is already tightening. Soros, as a former hedge fund manager, realizes that credit is the lifeblood of capitalism and any overregulation will also damage the economy. Reflexivity theory aside, this book is an excellent discussion of the challenges we are facing today.
 Don't look in this book for financial advice. July 17, 2008
0 out of 1 found this review helpful
The subtitle of this book, "The Credit Crisis Of 2008 And What It Means", is completely misleading unless you are satisfied with an answer that things are "changing". Beyond that, Mr. Soros doesn't have much to say. But don't take my word for this, just go to pages 158-159 in the Conclusion of his book where he states, as follows; "Near panic conditions prevail in financial markets. People want to know what lies ahead. I cannot tell them because I do not know. What I want to tell them is something different. I want to explain the human condition."
The fact that Mr. Soros has made several billion dollars is probably more likely to disqualify, rather than qualify, him as an expert on the human condition. He certainly would not be my first choice as a philosophical consultant. Mr. Soros would be well advised that when he doesn't have something to say about making money, he probably shouldn't say anything at all.
 Some interesting insights from a suspect individual July 17, 2008
I dislike George Soros. He takes billions out of the pockets of US and British tax payers and "repays" us with his hideous [...] propaganda and falsehoods. Compare this with John Templeton, who was a signficantly BETTER investor than Soros was, and put his money in underpriviledged parts of the world to help build them up. Templeton also used his money to create more value in the world through his humanitarian organization and Templeton Prize for worthy people like Mother Teresa.
I learned new things from Soros' analysis of "where we are, how we got here and why this might be the end of a period of stability" and think that's worth the read. On the other hand, his prescriptions and remedies are highly suspect. As another review wrote, it's good that Soros wrote this down so we can better understand what lurks in the mind of this creepy guy. (I believe he's one of Obama's puppet masters, so it's important to learn as much as we can before the November elections).
Investment books talk about how doctors and other professionals don't make good investors. I think the same can be said that good investors don't necessarily tranfer their skills into other areas. The Theory of Reflexivity may work for Soros, but it's a repackaging of LOTS of other people's work, only in a dumbed down, non-testable way. This book won't be getting Soros the respect that he apparently seeks from professional philosophers.
 dave July 15, 2008
1 out of 2 found this review helpful
3 stars because well written. Get inside the mind of the man who is attempting to destroy America. Or rather talk America into self destruction. A man who grew up under and understands propaganda. Founds and Funds the newest best propaganda organization in america (Moveon.org).
This man states in this book that facts don't matter. It's only what people believe that matters. This is true right up until the tyrant seizes control of all power. It is true right up until the other speculators looses all their money. Soro's made his fortune in the futures markets.
This is Mr. Soro's 'Mien Koff' ("My Struggle" referring to the book by Adolph Hitler; 'Mien Koff')
I recommend this book because you should read the words and attempt to understand your enemies.
 Excellent insights July 2, 2008
0 out of 2 found this review helpful
George soros brings in an unbiased perspective of impact of current events in capital markets and shifting paradigms of dominance from US to other countries A must read for global citizens
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