George Soros Spears the Myth of the "Free Market"

I don't understand MiTH. In the past, we've agreed that this whole housing bubble/post-dot-bomb economy has been based on people borrowing money they had no business borrowing because there was no way in hell they were going to be able to pay it back. Now he mocks the bubble concept.

Let's be honest, the middle class lifestyle in America has been supported for the last 10+ years by people borrowing money against the wealth "created" by increasing housing costs. Now it looks like Americans are done spending money; not because they are saving it, but because they can't borrow any more and they can't pay back what they've borrowed.

Recently, whenever the Dow drops a few hundred points, the Fed cuts interest rates. Sometimes randomly as an emergency measure. The idea that making it easier to borrow money to fix the problem that people borrowed too much money is amusing.

The economy is going to struggle the next few years. The issue is if the rest of the world can keep going without the American consumer.

 

What about the MEGAbubble?

Seriously, though, I can see a drop in American consumer spending affecting, oh, off hand, agriculture in south america, industrial production in china and europe, textiles in southeast asia, VW in Mexico.

Well, let's just say were rather connected.

 

The fundamental challenge is that we're not going to be able to continue consuming far more than we produce. We can debate semantics, but Soros is essentially correct about the "super-bubble" I'm afraid we are going to have to learn concepts like savings and investment as the world stops allowing us to live far beyond our means.

 

nah, we're just waiting for the great leap forwards

 

Nah...the economics prize isn't awarded by the same goons as the peace prize.

 

thanks for that. but what i'm really waiting for is Mr. Love & Justice (release date - 4/22 US, 3/3 UK)

 

I agree with the article even though it doesn't provide a "solution" but the source of the problem is pretty obvious, and very much in-line with what I have been saying for a while. And I still wonder where Milton is and how he is doing!

 

Until China allows its currency to be freely traded, there is no free market, so it is hard to draw any conclusions.

 

Why would anybody save. Look at the CD rates and then look at real inflation. You tell me if it makes any sense to save.

I am disgusted with this so-called stimulus plan. It is about time people and corporations take their medicine. Henry Paulson, Bernanke, Bush, Cheney and the alleged Maestro(Alan Greenspan) should be taken out and given a major a** whopping. What makes this all worse is the Democrats have a chance to lead and they are dropping the ball.

Dont you love how the banks dont want any regulations. They go to congress and tell them regulations are killing them. Yet, when the slightest bit of turbulence comes their way, they want a bailout. Dont tell me this plan is not a bailout for the banks, cause that is what it is.

Give me $600.....whoppee. At the rate the dollar is falling, that $600 will be more like $400.

Not to get political but the only candidate who has been honest about our plight has been Ron Paul. He is absolutely right about the Fed.

Rant off....

 

Typical Matt. All rhetoric and no facts.