Thread: Soros: Financial Crisis Severe

Soros: Financial Crisis Severe

Monday, April 7, 2008 9:23 AM

By: Monisha Bansal

Discussing his new book, "The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means," liberal billionaire philanthropist George Soros argued that the current financial crisis is "the most severe since the 1930s."

Soros' book was released Friday. During a conference call with reporters, Soros blamed the current financial situation on a "false paradigm."

"The global financial system, as it is currently functioning, has been built on a false paradigm," he said. "The false paradigm is that financial markets tend toward equilibrium, and deviations from that equilibrium are random. Therefore, markets are self-correcting, and this has led directly to regulators abandoning the role they ought to play - which is to prevent excesses from going too far."

Houman Shadab, a senior research fellow in the regulatory studies program at the Mercatus Center at George Mason University, however, said Soros is "incorrect to interpret recent events in the financial markets as resulting from a misplaced faith in markets. A more accurate interpretation is that federal authorities fail to adequately appreciate the self-regulatory mechanisms of market activities."

"The credit bubble underlying current financial woes did not stem from innovation in financial instruments, but primarily from the Federal Reserve intervening into credit markets to lower interest rates in response to the recession following the dot com crash," he told Cybercast News Service.

"The failure of financial institutions, such as banks, to appropriately manage the risks from subprime mortgage-backed derivatives is in part attributable to federal regulation and oversight creating a false sense of security among market participants," Shadab said.

"By contrast, market discipline has successfully mitigated these same risks in the relatively unregulated hedge fund industry, which has thrived in comparison during the credit crisis," he noted.

Soros argues in his book that the new paradigm should be "reflexivity," which he explained as understanding that "people act on the basis of imperfect understanding, which introduces an element of uncertainty."

He added that currently there are "two bubbles currently at play. You have the housing bubble and the super bubble, which has been developing for the last 25 years. It started basically in 1980 when Ronald Reagan became president in the U.S. and Margaret Thatcher became prime minister in England."

Soros said the "super bubble" has led to the increased use of credit, which has been growing too fast.

William Niskanen, chairman of the libertarian Cato Institute, acknowledged that the financial system might be at its worst point since the Great Depression.

But he told Cybercast News Service, "I think that the effects of it on the general economy would be much less than the 1930s. The commercial banks for example, their deposits are insured so you don't have people fleeing. Also, I think the Fed has a better understanding of appropriate policies than before 1933."

Niskanen added that markets "do tend toward an equilibrium, but the question is whether the equilibrium is at very low prices or very high prices. I don't tend to share Soros' view that all of these problems are a consequence of market fundamentalism, or an unwillingness to consider changes."

http://www.newsmax.com/insidecover/Soro ... 86004.html

What Soros didnt say is that Bush started the housing bubble when he called for more housing acess to loans in 2002 and the Big Banks / Hedge funds have been having a field day with fraud ever since

omitted

Heres what Soros knows about how to manipulate finances:

On September 16th 1992, Britain’s pound collapses when currency speculators led by Rothschild agent, Ashkenazi Jew, George Soros, borrow pounds and sell them for Deutsche Marks, in the expectation of being able to repay the loan in devalued currency and to pocket the difference.

This results in the British Chancellor of the Exchequer, Norman Lamont, announcing a rise in interest rates of 5% in one day and as a result drives Britain into a recession which lasts many years as large numbers of businesses fail and the housing market crashes.

This is right on cue for the Rothschilds, after they had privatised Britain’s state owned assets during the 1980’s, driven the share price up, and then collapsed the markets so they could buy them up for pennies on the pound, a carbon copy of what Nathan Mayer Rothschild did to the British economy 180 years before, in 1812.

It cannot be overstated that the Chancellor of the Exchequer at that time, Norman Lamont, prior to becoming a MP, was a Merchant Banker with N. M. Rothschild and Sons, who he joined after reading Economics at Cambridge.

Link at the bottom of the page: Look at the year 1992.



The problem wasn't that the people started using credit, the problem is, the peoples wages didn't keep up with inflation and therefore people had to use credit or sell or lose their homes for pennies on the dollar.

All these financial wipes want to say the American people are useless spendthrifts that piss money away. Yes, people do and have spent money on useless crap but all in all the useless crap doesn't add up to $15,000 dollars of average credit card debt. These levels were achieved because people started using their credit cards to pay the bills, not to buy $15,000 worth of useless junk. As the prices of things have been increasing in the last 10 years, the credit card debt also went up. What a coinsidence. Look at what the jobs are paying now days, wonder why people can't pay their bills on 1978 wages. I'm sick and tired of these people trying to make the American people out as irrisponsible people that use their credit cards to buy useless crap. This is nothing more than a manipulation of wages brought on by illegal and legal immigration and outsourcing, not the American people. Now you tell me who the irresponsible people are? When you get a home loan you are essentially trapped into a 30 year legal financial document. If your wages get cut by half your mortgage doesn't care. If you make $20 an hour then you budget accordingly, all the sudden your pay gets cut to $15 an hour where are you gonna get that $800 that you are no longer making on your job? Your credit cards! What has happened is the financial stability has been wiped out by the massive influx and utter manipulation of illegal and legal immigration and outsourcing of American jobs which has made the American households financial outlook unstabil. This is a clear and purposeful event that has happened and been put on us by the global powers, the politicians and the businesses that are virtually running everything. The American people have no voice in anything. We aren't asked about anything unless the policy in question is overwhelmingly agreed upon by the politicians and the American citizens. If the American people are opposed to it, we aren't acknowledged or asked. If the politicians and citizens agree on something then the politicians are more than happy to invoke our voices. Other than that, we don't matter. We have had our country and all our civil rights hijacked plain and simple. What constitution? There is no constitution. Whithout one part of the constitution, the rest is no good either, just like a book with the first chapter missing, its not worth reading because it lays out the whole book for you.
These politicians and financial people think we forget so easy and fast but I remember when the illegal immigration and outsourcing first started in my area. People making $21 an hour were told they're job was no longer needed so they were laid off, the next week the very same job was in the classifieds but the pay was now $15 an hour. Or the people that were laid off went to work at another company doing the exact same job for another company which paid $13 to $15 an hour. Yep, just to find out a few weeks later the jobs were being outsourced to India for $8 an hour. Hmmmm, I wonder why America is facing financial ruin right now?

Between the manipulated labor markets, manipulated financial markets and cost of loans, and the tax stealing federal reserve which is ran and manipulated by a private company, the majority of the American people and people all over the world are screwed. Its a race to the bottom of financial ruin for most and the ultimate riches for the 1 percenters. We are doomed because the hundreds of trillions the elite monetary powers control will never have a threat, they do what they want and if you don't comply, they have the men with guns and the prison cells to put you in, when in reality, they should be the ones in those cells. I hear tell there are over 6 million people in the global orginazation in one form or another. Increasingly everyone you see on the television newcast are CFR members. The heads of businesses and even down to the smallest local political office are all CFR members. They know the CFR controllers are so wealthy they either play the game like they are told, or they don't make it anywhere in life. Maybe thats why they all have the same messege which makes them all look brainwashed. Some are but mostly they are sell outs which play the game for they're own benefit.

http://iamthewitness.com/DarylBradfordS ... schild.htm