George Soros on the Current Market Crisis
Jan 25th, 2008 by Martin Lee
I just read an article by George Soros which was published in the Financial Times. Inside this article, George Soros talks about how the current crisis is the culmination of a credit expansion super-boom that has taken place over the past 60 years.
Some points from his article include:
- End of an era of credit expansion with the dollar as the international reserve currency.
- The lack of regulation and risk control of overly complicated financial products.
- This is the worst crisis since world war two.
- The credit expansion cycle must now be followed by a cycle of contraction.
- There will come a point where the Fed is unable to stimulate the economy by cutting rates.
- While recession in the developed world is more or less certain, some countries like China, India and the oil producing countries might do well.
- The resulting political tension might disrupt the global economy or worse.
You can read the entire article of George Soros here.