DAVOS/SWITZERLAND, 27JAN10 - George Soros, Cha...
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George Soros known for his hedge fund bets shares his insights about the market. This is classic George Soros, an excellent treatise on market behavior, there is no irrational exuberance there is only rational exuberance and “When I see a bubble the first thing I do is buy because I make money! when I see the flaw in the bubble I am happy because then I have to sell”. If you know markets are unstable and they don’t move to equillibrium…you cannot predict them.
Markets are imperfect and regulators are more so, regulators will always be wrong but they need to recognize it. I see myself argue both sides of the argument, central planning cannot work, market is far superior in allocating resources.  Dollar is a very weak currency except all the others. If the Chinese allow their currency convertible in the capital account then Renbi will be a very strong currency. Chinese have a problem! 25 years of excess needs to be worked off so the future looks pretty bleak. Future is unpredictable therefore I don’t want to predict it. There is always Uncertainty that is what is left by the Risk managers. The range of uncertainty is also uncertain. There are just too many variables that go wrong. This is not the time to have a firm conviction… fading market.http://c.brightcove.com/services/viewer/federated_f8/607698505