The remark is revealing, and at the same time both disturbing and remarkable in its honesty. He has been exceptionally straight forward about the mistakes he has made, i.e., his own fallibility. The final lecture he gave at the CEU was highly interesting to me. (see 'the way forward' video in a post above) I read the transcript of the entire series, and gave a copy to an economist friend who was equally fascinated by the lectures. They helped a great deal in grasping the more important aspects of his reflexivity concept. I now understand that bubbles are a normal phenomenon and that we could recognize and do something to keep extreme bubbles from forming , but probably won't because there is still a large contingent that believe free markets spontaneously move toward equilibrium. Just understanding that that concept is clearly wrong much of the time is a tremendous help for anyone trading in the markets on an intermediate or longer time frame.
the internet bubbles and the real estate bubbles were created by Fed policies and the banks that own the FED. The were not a free market creation... they were a FED banker and Democrat like Dodd and Frank creation. Let me explain real estate to you as it will show you that the bubbles were not created by a free market but a rigged market by banks that Soros himself is owned by or owns... Like So Gen. People working with real money in CA used to give give second trusts deads for at least 5 points more plus big closing costs. sometimes you could get up to 100 percent. Today people gives seconds for about 7 points more plus big closing costs. but I am not sure that anyone lends on that last 20 percent of if so you are paying like 26%. The lenders also typical send someone to the sight and make sure there is equity for their money to foreclose upon. During the bubble which greenspan said did not exist the... the banks were lending to anyone at the same rates as senior loans. That was not the way free markets act. That was the way a market acts when the primary players have access to the FED reserves spigot of cash. Remember So Gen got billions from the bank during the AIG bail out. That was Soros. 2. Therefore acting like we need more govt regulation to control a rigged market not a free market is like giving a larger printing press to the FED RESERVE or proscribing morphine for a pot problem. Soros is a FED/banker spokes model. almost everything he says is a speech for the Banker Kabuki show. Please... stop giving these spokes models credit for being deep thinkers. he is just guy who made some connections and became a banker spokesmodel with great access to their money in info.
Yes well I noticed in the videos that Soros is quite knowledgeable in the workings of the human psyche as I also have an interest which in the presence of extreme ego I find to be disturbing .
Yes your right he does give an insight into bubbles and the thinking, decision making and reasoning of people as market participants that should be understood if anybody really wants to make it as a trader. Most around here don't understand or even make a start in trying to understand how a market really works and kudos to those who are attempting to learn and gain knowledge as it will help your trading no end.I already know quite a lot about traders behavior (there's a whole story going on in a price chart of participants opening positions, buying momentum,being shaken out,covering, closing for loss or gain etc etc) as I was lucky enough to get help from a very smart and excellent pro trader a few years ago.
Yes good points, government policy does heavily influence markets and can create a climate for a housing bubble. For example look at New Zealands current housing crisis, foreign money has been flooding in buying property as there was no restrictions on foreign buyers, non NZ resident or citizens were free to buy with no checks on where the funds came from or anything.
He was also reported to be buying gold heavily in 2012 which was incidentally right after the top 2 options. A. The cunning bugger was really doing the opposite and buying from the sellers 2010 and unloading to the buyers 2012 or B. The snake oil was wrong time wrong place twice like most amateurs.
Ultimately you will come to understand that banks and their regulators can suffer the same misconceptions as yourself, though perhaps not quite so easily as you. We are all fallible, although some have more complete understanding then others. Taken together that's what makes a market function as it does.
I'm one of the very few here, probably, that agrees completely with Soros re gold. Generally speaking, both investing in gold for the long run and short time-frame trading in gold are based on the "Greater Fool Theory." Although, as Donald Trump well knows, finding a fool greater than oneself can be lead to handsome profits.