Saturday, February 21, 2009
George Soros: World Financial System Has Effectively Disintegrated ... Turbulence More Severe than Great Depression - More Like Demise of Soviet Union
Reuters has the following bombshell:
Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.
How could it be worse than the Great Depression?
Because the bigger the speculative bubble, the bigger the crash. And the bubble from 2001-2007 was the biggest speculative bubble in history.
Indeed, Paul Volcker, Nobel prize winning economist Joseph Stiglitz, former Federal Reserve Governor Frederic Mishkin, PhD economist Marc Faber, former Goldman Sachs chairman John Whitehead and many others have also said this could be worse than the Great Depression.
And if Soros is right that this is like the demise of the Soviet Union, then the question arises whether the financial crisis might lead to nations breaking up. The forecasters at Leap2020 certainly think so.