The Bubble of American Supremacy by George Soros

That was my third book of Soros. In it Soros goes high with his critique of George Bush and latest events involving US on a global scene. He argues that after September 11th attacks, American government abused its principles and launched the mistaken "War on Terror". Even though I had the opposite view - I must admit that Soros's arguments are very convincing and after reading the book, one starts to questions the view that Iraq war was just war and that Bush administration was legitimate in that action....

But the book has a dose of optimism. It is in Soros constant promotion of Open Society idea.The part of the book describes his activities in promoting the Open Society in Russia and other Central and Eastern Europe countries. The book has its special meaning today - in the year of the presidential elections in US....
Strongly recommended !!!

The New Paradigm for Financial Markets - conclusions

The book itself is not very long, so I could finish it while coming back from Paris.
In the later part of the book Soros elaborates on his theory of reflexivity and how it helps in the understanding of the current financial crisis. The theory replaces traditional "equilibrium" theories that laid ground to strong market fundamentalisms - that claim that market are always right. He proves that sometimes they are not.....
The book concludes with interesting suggestions, addressed particularly toward market regulators. One of his propositions says that regulators should care more about credit expansions and not just about monetary face of financial system.

The book is great - a year ago I read Alchemy of Finance, but for me it was more technical, so I even did not dare to post a review here. The "New Paradigm" is different. It is intriguing and breathtaking.....

Last but not least - it's nice to hear Soros talking about the ideas and about the size of the crisis.
http://www.pbs.org/newshour/bb/business/jan-june08/soros_05-13.html

Reading while in Paris: Gorge Soros's "The New Paradigm"

"The New Paradigm for Financial Markets: The Credit Crash of 2008 and What It Means"

This is the book I started to read in Paris. It's quite different from my "holiday's readings" that you can see here. Soros analysis of what we perceive today as the financial crisis is deep. No question about that.

Traditionally, we think the current crisis is just "subprime" lending crisis. It is not. This is just the effect. The cause is deeper and has roots in processes and trends almost 10 years old.

Particularly I was intrigued by the conclusion that the cut of the rates of federal funds by Fed (from 6.5% to 3.5%) in the course of just few months of 2000, caused by Internet bubble, and the trend that get it down to 1% by 2003, has created a long term bubble in housing markets....
The examples he gives, are just breathtaking and almost unbelievable....

As in "Alchemy of Finance" he writes about his life's experiences and how thay influence his philosophy and activity. I know, Soros is controversial. But he explicitly says about the philosopher who was his master: Karl Popper. For this very reason I value Soros, as I'm also a pupil of Popper, and his Open Society ideas ....

I'm in the mid of the book now, I will write more when finished.