Thursday, July 16, 2009

A two-way, reflexive connection

Books of Account
The New Paradigm for Financial Markets
George Soros

Market prices vs fundamentals

The belief that markets tend towards equilibrium has given rise to policies which seek to give financial markets a free rein, observes George Soros in The New Paradigm for Financial Markets: The credit crisis of 2008 and what it means. He calls such policies ‘market fundamentalism’ — something that is ‘no better than Marxist dogma.’


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