- Hardcover: 162 pages
- Publisher: PublicAffairs; 1st edition (15 May 2008)
- Language: English
- ISBN-10: 1586486837
- ISBN-13: 978-1586486839
- Product Dimensions: 14 x 1.4 x 21.6 cm
- Average Customer Review: 3.2 out of 5 stars See all reviews (27 customer reviews)
- Amazon Bestsellers Rank: 672,079 in Books (See Top 100 in Books)
The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means Hardcover – 15 May 2008
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This was a book that George Soros badly wanted to write. It is probably not what many of its readers expect to read. But it shows that in his deeper thinking about the way markets operate, Soros was several decades ahead of his time... His insights are clear and concisely expressed. They are worth reading for anyone interested in the topic. --Financial Times
"Lots of commentators claim to have anticipated the credit crunch; Soros actually did, years ago. And he says we're `still walking towards the storm rather than away from it.'"
Top Customer Reviews
In addition, if you have read any of Soros' other books prepare to go over some familiar ground. As he fairly explicitly acknowledges a large motivation for him to write is to promote his conception of relexivity. If you are expecting and wanting to read this and discover trading tips, or very specific economic predictions you might as well save your money. Almost by its nature the concept of reflexivity does not lend itself to precision.
Having said that, the concept itself is an interesting one and can be applied widely, not just in markets, if only as a way to understand how views can affect the reality they seek to explain. One could argue for example that the War on Terror legitimised and reinforced the very thing it sought to oppose, and then in turn in doing so gave more strength to the argument that terrorism needed to be fought. On this point there is an excellent quote included in the book (can't remember if it is from Rummy or Rove) arguing that the US administration creates its own reality, which its critics are constantly struggling to catch up with an understand.
So personally I enjoyed the book more as a sort of scrapbook of what Soros is thinking right now, built around his concept of relexivity, rather than as anything particularly specific to the credit crisis.
Most of the book's content in Part One presents the rationale for this new paradigm but unfortunately most of the discussion is in the grounds of philosophy, and heavily influenced by the ideas of philosopher of science Karl Popper (see The Logic of Scientific Discovery and Open Society and Its Enemies) combined with theoretical concepts from social sciences, economics and some finance.Read more ›
On the other hand the author presents concisely significant insights on the nature of financial markets, the causes of boom and bust cycles and the causes and nature of the present crisis which he characterizes as super-bubble, the most serious since the great depression and discusses its likely consequences.
The core postulates of the author are:our understanding of the world in general and of financial markets in particular is inherently imperfect because we are part of the system we seek to understand. People with imperfect understanding interact with reality in two ways. On the one hand they seek to understand the financial markets which he calls the cognitive function. On the other, they seek to make an impact and change the situation to to their advantage which he calls the manipulative function. The interaction of the two functions which compounds the uncertainty and indeterminacy, the author calls reflexivity (uncertainty relates to the participants' thinking, indeterminacy to the course of events).
The author contents that the prevailing paradigm that financial markets are self-correcting and tend towards equilibrium is fallacious.
Financial markets under ordinary conditions seemingly are in equilibrium with small random variations.Read more ›
Most Recent Customer Reviews
so mutch information for the financialy minded
Many thanks George
George soros is always worth a read. always accessible and straightforward.Published 23 months ago by Amazon Customer
Although this book is quite short, at 160 pages, it still feels too long for what the author actually has to say. Read morePublished on 17 Nov. 2012 by Phil O'Sofa
Two years on from publication and endless debates, column inches and media lunches about the state of the economy's affairs, this book reads as a genuine attempt to offer both an... Read morePublished on 30 Dec. 2011 by Joseph Augustine
Soros has 11 billion dollars to his credit. When banks were going bust, he was going up by 2 billion, so if anyone has backup to his view of the financial crisis of 2008, Soros is... Read morePublished on 31 July 2009 by Charles Wahab
The main problem with George Soros's books is that he finds it impossible to leave himself out of them. Read morePublished on 20 May 2009 by A. I. Mackenzie
George Soros has forgotten more about finance, economics and trading than most of his critics will ever know. Read morePublished on 13 Feb. 2009 by Dennis Littrell
While no one can doubt Mr Soros abilty as an investor I found this book extremely repetitive. The disucssions present would have been better presented in a concise paper, rather... Read morePublished on 8 Feb. 2009 by Shun Yao
George Soros has tried and, on his own account, failed to persuade the world of his philosophy before. Read morePublished on 15 Jan. 2009 by Olly Buxton
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