April 16, 2010

George Soros Warns Of New Bubbles Being Inflated

At an event hosted by The Economist magazine, George Soros warned investors that the methods used to resolve the 2008 financial crisis are no different than the methods that helped cause the crisis to begin with. Soros says we are blowing inevitable bubbles that will have similar dire results:

“The success in bailing out the system on the previous occasion led to a superbubble, except that in 2008 we used the same methods….Unless we learn the lessons, that markets are inherently unstable and that stability needs to the objective of public policy, we are facing a yet larger bubble….We have added to the leverage by replacing private credit with sovereign credit and increasing national debt by a significant amount.”

Source: The Pragmatic Capitalist

Related ETF`s: ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), SPDR S&P 500 ETF (Public, NYSE:SPY) and SPDR Gold Trust (ETF) (Public, NYSE:GLD)

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