For 20 years, George Soros has challenged the theory that markets, however choppy, always move toward equilibrium.
Now a meltdown has handed him rich evidence that the hypothesis isn't just flawed, it's dangerous.
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.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aErAvCsDM8ZU
Now a meltdown has handed him rich evidence that the hypothesis isn't just flawed, it's dangerous.
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.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aErAvCsDM8ZU
