Sunday, September 13, 2009

The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means (George Soros)



We were used to Soros thinking of himself as a genius of financial markets - he's been pretty successful (read: lucky) at dodging black swans, you can't take that from him... Now meet the Soros who thinks of himself as a genius of economic theory - one step short of a genius full stop. He confesses to having started "reading classical philosophers in [his] early teens" (!) and now rubs his 2 neurons together to try and deliver a holistic theory of financial markets through a rather shallow and messy analysis of the participants' behaviour, their interaction, and their impact on the market. The whole effort is quite laughable - the only thing he clearly demonstrates is an unbelievable megalomania (I would love to see a review of this book by a psychoanalyst...) and a propensity to deliver nuggets like "I contend that social events have a different structure from natural phenomena" (no sh!t, Sherlock ??). I still gave the book half a star (on a scale of 1 to 5...) as the author actually did read Popper (and reminds you so every other page). Now come on, Georgie, just because you coughed up a few half-digested concepts borrowed from some eminent (and far more articulate) thinkers and renamed them with your own concocted terminology does not make you an original thinker, or even a good read - the word plagiarism springs to mind...

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