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Soros: Crisis Is Culmination Of Life’s Work

This is somewhat dated news, but it is so revealing we had to post it anyway – since it is a timeless revelation of the forces at work against our country and way of life.

From The Australian:

George Soros interview: A very good crisis

Peter Wilson | March 19, 2009

George Soros is having a very good crisis. Other investors are wilting, political power structures are being upended and market economists are scrambling to fashion new theories, but the world’s most famous speculator is having a belated heyday.

"It is, in a way, the culminating point of my life’s work," the 78-year-old says in his heavy Hungarian accent during an interview at his London mansion.

If Soros had retired from the money markets at 48 to become a philosopher – which was his life plan when he set up his own Wall Street hedge fund at the age of 43 – the world is unlikely to have heard of him, as either an ideas man or a money man. Even if he had ended his career 20 years later, he would have been remembered as little more than the big-stakes gambler who "broke the Bank of England" with his 1992 bet against the pound that earned him $US1.1 billion.

At 68 Soros had just predicted a global financial collapse which did not happen, just as he had done a decade earlier; his pet theory of market behaviour, which he calls "reflexivity", had been largely ignored; and his political donations had bought him little sway in Washington. Yet today, he says, all those strands seem to have come together – "the American election, the financial crisis, the theory of reflexivity, so it is actually a very stimulating period"

Having twice cried wolf, he finally got it right by being one of the very few people to anticipate the 2007 credit crunch and current economic collapse. In the process he has gained enough respect for his ideas on market behaviour to help his ninth book, The New Paradigm for Financial Markets, win the sales and positive reviews that had eluded him.

And foreseeing the biggest economic crisis since the Great Depression has certainly paid off financially. In August 2007, with the first symptoms of the credit crunch on the horizon, Soros came out of semi-retirement to reassume control of his Quantum investment fund, astutely repositioning it for the tsunami about to hit. By year’s end Quantum was up almost 32 per cent for 2007, netting Soros profits of $US2.9 billion at a time when other financiers were struggling to break even.

His fortune was estimated at $US11 billion by Forbes in September 2008 and it has grown even larger amid the spreading financial carnage. That same year, in which Hedge Fund Research estimates the hedge fund industry lost a record 18.3 per cent, Soros was up another 9 per cent…

After decades exploiting any weakness he could find in the regulatory system, Soros certainly knows where the flaws are, and he warns that past US policies have been based on the “ideological excess (of) market fundamentalism” – the assumption that markets can correct themselves with little need for government intervention in financial affairs

Soros advocates a partial nationalisation scheme, through the creation of a “good bank” as well as a “bad bank”, even though diverting solid assets from existing commercial banks into such a “good bank” would erode shareholder wealth

This article is quite correct about how Mr. Soros has been calling “wolf” for most of his illustrious career. A career which has always been based upon stirring up fear and then shorting the market.

But it mistaken to suggest that his theories have been ignored until very recently.

Mr. Obama and the rest of the Democrats have accepted them lock, stock and barrel for some time now.

Of course they didn’t have much choice. Having been bought (lock, stock and barrel) by Mr. Soros long ago.

"It is, in a way, the culminating point of my life’s work"

Even Mr. Soros may some day come to regret admitting this.

For the record, here is the full context from The Australian’s interview:

So people bring things to your attention if they think a situation is developing in a region or a market?

I read the newspaper, I have some financial services that I also look at. I’m not on top of the financial markets. I just don’t have adequate information on detail so I can only use blunt instruments that are sort of macroeconomic instruments. On the other hand, I am tremendously involved in policy issues and that is where I am focusing.

What sort of policy?

The financial crisis, and how to solve it. It was not something that I was particularly concerned with prior to the rise of the crisis and I am also involved in the activities of the (Soros) Foundation.

But for the past 18 months you have been keeping an eye on the markets?

Yeah but I have also been writing a lot more than I was writing before because the crisis really stimulated me. I wrote a series of articles in the course of the year, I wrote a book, I published a book and I’m just about to publish a sequel to last year’s book, bringing it up to date, I am just working on it now.

So do you have a sense that things are coming together for you now?

It is in a way a culminating point of my life’s work, so to speak.

Everything is coming together.

Yeah, the American election, the financial crisis, the theory of reflexivity. So it is actually a very stimulating period.

And through it all, as we have noted before, he has made out like a bandit. – Exactly like a bandit.

Both last year:

And this year:

The world’s top earning hedgies 2008

Jim Simons    Renaissance $2.5bn

John Paulson    Paulson & Co $2.0bn

John Arnold    Centaurus $1.5bn

George Soros    Soros Fund $1.1bn

You can read the full interview here.

(Thanks to Proreason and Debjeet for the heads up.)

This article was posted by Steve on Thursday, March 26th, 2009. Comments are currently closed.

10 Responses to “Soros: Crisis Is Culmination Of Life’s Work”

  1. proreason says:

    Sweet-natured George Soros is just thrilled with the destruction of the world’s economies. From the Australian WSJ:

    George Soros interview: A very good crisis

    George Soros is having a very good crisis. Other investors are wilting, political power structures are being upended and market economists are scrambling to fashion new theories, but the world’s most famous speculator is having a belated heyday…

    After decades exploiting any weakness he could find in the regulatory system, Soros certainly knows where the flaws are, and he warns that past US policies have been based on the “ideological excess (of) market fundamentalism” – the assumption that markets can correct themselves with little need for government intervention in financial affairs…

    Soros advocates a partial nationalisation scheme, through the creation of a “good bank” as well as a “bad bank”, even though diverting solid assets from existing commercial banks into such a “good bank” would erode shareholder wealth…

    http://www.theaustralian.news.com.au/business/story/0,28124,25211027-5018057,00.html

    Like Obamy’s other mentor, Bill Ayers, George only wishes he could have done more.

  2. GL0120 says:

    Remember that the last two times he cried wolf he didn’t have his hand-picked boy in the White House and a lying, greedy bunch of Aholes running congress.
    Planning made the difference this time!

  3. Reality Bytes says:

    A clip from deep inside the Soros Lair – high atop a Hooters in midtown Gotham.

    http://www.youtube.com/watch?v=jTmXHvGZiSY

    Truth is, we shouldn’t begrudge hedge fund managers who profit from their success. They create wealth & capital for start ups, commerce & investment. Many of these guys are major philanthropists who sponsor not only great charities & the arts but a whole spectrum of industries & markets that support them – INCLUDING MY LITTLE BEAM OF SUNSHINE.

    SOROS ON THE OTHER HAND, I AM WILLING TO MAKE AN EXCEPTION. Hey, he’s not a client is he?! Uh, I’ll get back to you on that. Meantime, keep an eye on him.

  4. Right of the People says:

    What sort of policy?

    The financial crisis, and how to solve it. It was not something that I was particularly concerned with prior to the rise of the crisis and I am also involved in the activities of the (Soros) Foundation.

    Solve it you douche-nozzle? You caused it. I know Lucifer has a special demon set aside for his slimy, manipulative arse when his time comes. I HOPE a CHANGE is coming soon.

    Lock and Load.

    • TwilightZoned says:

      You must be a psychic. I thought the exact same thing. It’s pretty easy to predict something you are causing. Soros has a place on the right-hand side of the devil. He is pure evil.

  5. proreason says:

    Those of us distraught by the destruction of our way of life can take some comfort in the fact that Soros is 78 years old.

    Personally, I’m wishing him a peaceful and rapid demise.

  6. proreason says:

    Haven’t had time to check it out, but O’Reilly last night said two interesting things about Soros:

    1. He is a convicted felon in France.
    2. He now owns or controls Indy Mac. As you may recall, little Chuckie Shummer publicly dissed Indy Mac in the summer of 2008, which let directly to a run on it, and it being taken over by the feds. Isn’t it interesting that now, the exretable Mr. Soros appears to control it?

    And on the same show, there was a woman who basically denied any wrongdoing by George……described him as someone she would want to “manage” her money.

    Sheez

    • proreason says:

      Other points…..if excretable George is indeed involved with IndyMac, is he doing it out of the goodness of his heart?

      And where was George during the run on IndyMac?

      And is his excretableness a kissin cousin with little Chuckie?

      no doubt this is all totally innocent.

      Why would anyone even be curious about it?


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