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Today on the Relay, George Soros from his lectures at Central European University, explaining the nuts and bolts of reflexivity and giving his very real world analysis. As I mentioned yesterday, Soros' analysis is broadly parallel to that of Hyman Minsky, describing waves of credit growth cascading over one another, the authorities ratifying each financial innovation with backstopping and bailing out, and the ultimate -- what Soros calls -- Superbubble.
On the other hand, Soros' approves of the current policy of allowing the banks to so-called "earn their way out" by collecting the difference between the zero they borrow at and the three and a quarter they can get when they lend to the government. Hard for Demand Side to see exactly how this deflates the Superbubble. And in fact, it doesn't. That comes later, in Soros scheme, when things have quieted down.
But here. George Soros.