Sunday, January 27, 2008

Soros predicts worst recession for 50 years

Amid collapsing stock prices worldwide, the billionaire investor George Soros has told an Austrian daily, the Standard, that the United States is threatened with recession and the world is facing the worst financial crisis in half a century. He said over the past few years politics had been guided by some basic misunderstandings stemming from something that he called "market fundamentalism" - the belief that financial markets tended to act as a balance. "This is the wrong idea," he said. "We really do have a serious financial crisis now."
Meanwhile,in Mumbai, some market analysts are suggesting Soros shorted the Indian markets last week. Over 15 years after he shorted the British pound in September 1992 and earned one billion dollars, local market sources say one of Soros's funds may have shorted the Nifty last week.

IMO:The financial markets do not look like an effective balance, or anything like a really good or ideal way to run a country. But how should a country be run ? Democracy doesn't seem to work well, but the temptation to decline to look for valid alternatives (reasoning, for example, that we do not want another Adolf Hitler) is reasoning that can inflict its own downfall on itself. Unpalatable facts, however, should not in themselves constrain us to reasoning to eventual results which are the same as those of Soros.

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