Soros says world is witnessing end of pure, unregulated capitalism model (that he caused)

Blogging Stocks ^ | Feb 23rd 2009 | Joseph Lazzaro

[E. Pluribus Unum]

You might say that a key investor, one of the exemplars, is no longer bullish on the pure bulls. Or on the unregulated bulls. Or on the totally free market bulls.

Billionaire investor George Soros told Bloomberg News that the current global financial crisis originated during the deregulation of the 1980s, and signals the end of the free market model that has dominated capitalist countries, and indeed much of the developed world, since the the end of the Cold War with the break-up of the Soviet Union in 1991.

The end of market absolutism?

Speaking at a private dinner for economists and bankers at Columbia University in New York, Soros said liberalization of the financial industry started by the Reagan administration in 1981 has led to a series of crises requiring government intervention, Bloomberg News reported.

Further, Soros added that the U.S. housing sector's collapse has "damaged the financial system itself" and the philosophy of "market fundamentalism" was now in doubt because, contrary to economic conservatives' theory, markets have proved to be inefficient and affected by bias, rather by all available information, Bloomberg News reported.

Soro also reiterated that the Obama administration's plan to buy toxic assets from banks won't be enough to normalize credit flows. Two weeks ago, Soros wrote in The Wall Street Journal that a better plan, among other measures, would involve injecting capital into the banks, and cutting minimum capital requirements. (Subscription required.)

Currently, Soros is chairman of the Soros Fund Management, LLC, a hedge fund, and is also is founder of the Open Society Network, a private, grant-making foundation that focuses on democracy and human rights issues.

Soros is perhaps best known for one of the most cunning and successful short-term plays in investment fund history. In September 1992 Soros sold short more than $10 billion of the British pound, after the Bank of England failed to raise interest rates. Soros' profit on the ensuing fall in the pound: about $1.1 billion.

Market / Economic Analysis: Much to stir on from Soros. Briefly, Soros is in agreement with most economists that deregulation went to far, and that toxic asset removal by itself will not solve the financial crisis. Less convincing, at least at this juncture, concerns assessments of free markets. At present, what we can argue is that markets provide incentives and, over time, are more efficient than other economic systems, but they are not self-corrective / self-regulating and are subject to crises. Still, the above does not negate the market model, but rather argues for mixed capitalism, as opposed to pure capitalism.

During the Bush administration (but not every deregulation act started during 'Bush 43'- - some originated before), the U.S. went from 'markets represent the best model and deploy resources efficiently,' to 'markets are self-correcting' and 'markets are not subject to crises.' That shift is in large part responsible for where we are today - - experiencing the worst systemic conditions in generations. Hence, after the system has been stabilized, the regulatory reform must proceed from the following premise: that markets provide incentives, but there must be limits and safeguards to prevent excessive risk, incompetence, fraud, and greed from jeopardizing the flow of credit.

[E. Pluribus Unum]

I am absolutely convinced that the $550 billion money market run of September was engineered by George Soros (in concert with the Saudis or China) to help elect Obama.

[screaminsunshine]

Dear Mr. Soros. UP YOURS!

[Vision]

Makes sense. Is it being investigated?

[freekitty]

So am I.

[raptor29]

I’m really wondering how much longer this guy is going to be allowed to, well, be around.

[screaminsunshine]

Well. The natives are getting restless.

[nobama08]

I’ve often wondered the same thing. I am sure he has lots of enemies.

[sinanju]

Strange indeed, with all the enemies he’s made, why has no-one taken a shot at him?

[redhead]

Well, he ought to know, since he has been working on this plan for many years. He engineered the whole thing.

[Cindy]

http://www.freerepublic.com/focus/chat/2136635/posts

“Are you looking for a job?”

Note: This thread is updated on a regular basis.

[Leisler]

Everywhere in the world, people are chained by government force to fiat money and central bank control of all banking, finance, stocks.

Free enterprise?

Yeah. Right.

[VRWC For Truth]

More like massive Socialism failing everywhere worldwide. This guy is a douche bag.

[pepperdog]

I have thought so from the first time I heard about it. Look what he did to England, and notice how the intervention of the government into the housing market isn't mentioned. Oh, and remember Soros is a one world order guy. Anyone here ever try to get on the campus at his one world university in Las Vegas New Mexico? No can do, guards will keep you out. He is one evil dude.

[modest proposal]

Its disgusting that someone as rich as he is goes off on captialism. I hope he gets his in the end.

[ChicagahAl]

"Briefly, Soros is in agreement with most economists that deregulation went to far"

"Most economists"?

The problem is that regulation and manipulation (CRA) went too far.

How do you convey that to the useful idiots?

Give us back the free market. Unelect the Democrats.

[Mad Dawgg]

"Soros says world is witnessing end of pure, unregulated capitalism model (that he caused)"

When the Revolution starts Soros will be one of the first to be stood up against the wall!

(apologies to DNA)

[scooby321]

He and his Dad were spies against Jews in Poland for the Nazi’s being Jewsih perfect cover.

[DarthVader]

“When the Revolution starts Soros will be one of the first to be stood up against the wall!”

And shot twice.

[BuffaloJack]

I would hope that American Capitalism will be around longer than George Soros.

[scfischer7]

George soros is an international James bond supervillain. I just hope we have some good agents on the case