[OPE] George Soros on equilibrium

From: Jurriaan Bendien <adsl675281@telfort.nl>
Date: Sat Oct 24 2009 - 11:51:45 EDT

Transcript: George Soros interview
Chrystia Freeland
FT October 23 2009

(...) "And you have to recognise that the whole concept of how financial
markets operate was false, namely the idea that they tend towards
equilibrium. They don't. They actually are prone to generate asset bubbles
and so the regulators have to accept responsibility about not letting those
bubbles become self-reinforcing and create a crash. That responsibility they
expressly refused. They said, we can control the money supply, but not asset
bubbles, and they have to accept responsibility for it, knowing that they
will always mistakes. However, when they control credit, they take a step
and then they get a feedback from the market and so the feedback will tell
them whether they've done enough or whether they have to do more. So this
feedback helps to correct and get close to maintaining balance."

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