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George Soros... (born August 12, 1930, in Budapest, Hungary, as György Schwartz) is an American currency speculator, stock investor, businessman, philanthropist, and political activist.
Soros is estimated currently to be worth around $11.0 billion in net worth; he is ranked by Forbes as the 29th-richest person in the United States and has given away $6 billion to charities and his favorite causes since 1979.
Soros is chairman of Soros Fund Management and the Open Society Institute and is also a former member of the Board of Directors of the Council on Foreign Relations. He is also one of three initial funders of Center for American Progress, and is represented on the board.
His funding and organization of Georgia's Rose Revolution was considered by Russian and Western observers to have been crucial to its success, although Soros said his role has been greatly exaggerated. In the United States, he is known for having donated large sums of money in a failed effort to defeat President George W. Bush's bid for re-election in 2004...
In an interview regarding the economic crisis of 2008, Soros referred to it as the most serious crisis since the 1930s. According to Soros, market fundamentalism with its assumption that markets will correct themselves with no need for government intervention in financial affairs has been “some kind of an ideological excess”. In Soros´ view, the markets´ moods — a “mood” of the markets being a prevailing bias or optimism/pessimism with which the markets look at reality — “actually can reinforce themselves so that there are these initially self-reinforcing but eventually unsustainable and self-defeating boom/bust sequences or bubbles”.
It's not enough to regulate money - you also have to regulate credit.
It strikes me one possible explanation is to divert attention away from the derivatives bubble as the prime cause of the systemic breakdown by focussing public attention on the sub-prime fiasco.
What derivative bubble are you talking about? I don't think there's been any mayhem caused by any derivatives (yet, at least), and honestly, I don't think there will be (unless you include credit default swaps). Maybe I just need to learn more about the situation, but so far, everything looks relatively settled and non-apocalyptic.
Originally posted by HimWhoHathAnEar
We must first identify the immediate cause which has detonated the present unprecedented turbulence. That cause is unquestionably the $1.5 quadrillion derivatives bubble. Derivatives have provoked the downfall of Bear Stearns, Countrywide, Northern Rock, Lehman Brothers, AIG, Merrill Lynch, and Wachovia, and most other institutions which have succumbed. Derivatives have made J.P. Morgan Chase, Bank of America, Citibank, Wells Fargo, Bank of New York Mellon, Deutsche Bank, Société Générale, Barclays, RBS, and money center banks of the world into Zombie Banks.
Derivatives are financial instruments based on other financial instruments paper based on paper. Derivatives are one giant step away from the world of production and consumption, plant and equipment, wages and employment in the production of tangible physical wealth or hard commodities. In the present hysteria of the globalized financial oligarchy, the very term of "derivative" has become taboo: commentators prefer to speak of toxic assets, complex securities, exotic instruments, and counterparty arrangements.
At the time of the Bear Stearns bankruptcy, Bernanke warned against "chaotic unwinding." All of these code words are signals that derivatives are being talked about. Derivatives include such exchange traded speculative instruments as options and futures; beyond these are the over-the-counter derivatives, structured notes, and designer derivatives. Derivatives include the credit default swaps so prominent in the fall of AIG, collateralized debt obligations, structured investment vehicles, asset-backed securities, mortgage backed securities, auction rate securities, and a myriad of other toxic variations. These derivatives, in turn, are pyramided one on top of the other, thus creating a house of cards reaching into interplanetary space.
Until the root cause is arrested we will see bailout excitement as the only tradable commodity. The only way to break these contracts is an Economic Emergency Declaration from the president. That would mean an admission that something is wrong and probably won't happen until it's too late. Much easier just to print money.
JP Morgan holds some $90 Trillion of derivitaves by itself!