Mr Soros believes that central bankers are partly to blame for the credit crunch because of their past behaviour in bailing out the financial sector whenever it got into trouble for over-lending, the so-called moral hazard problem.
He said that the central banks should explicitly target asset bubbles such as housing booms and try to stop them getting out of control, which is something they have resisted doing so far.
And he said that tougher but smarter regulation would be needed in the future in order to reduce the excess supply of credit in the economy.
Wednesday, May 21, 2008
[the saint] george gives his blessing
George Soros says the worst is yet to come and when he speaks, I do believe we ought to sit up and listen, if only to read between the lines. As one close to the action, he is well placed to speak on this issue and I, for one, would like to know what is planned for us:
Probably, George and you might also altruistically add that funding insurgency in Latin America, exploiting women in Eastern Europe and contributing to crashes in Asia, not to mention the narcotics and porn rackets should be rigorously quashed by vigilante groups headed by people like ... well ... like yourself.