The difference between how the mainstream media is reporting the current economic situation and how people who actually understand the stuff because they work with it day to day is quite astounding. This is the kind of article that you have to read yourselves, pretty much every sentence is worth some pretty serious thought.
“We are facing the worst financial crisis since the Great Depression”, Soros writes in The New Paradigm for Financial Markets, a book rushed online this week. The culprit, he says, is a misconception that markets can correct themselves, no matter how we short-circuit them with easy money, massive leverage and brain-bending synthetic instruments.
“The belief that markets tend towards equilibrium is directly responsible for the current turmoil,” the billionaire philanthropist writes. “It encouraged the regulators to abandon their responsibility and rely on the market mechanism to correct its own excesses.”