George Soros’s Double Bubble

I hate George Soros for destroying the pound when another of our pairs of incompetents were in government – John Major and Norman Lamont. These terrible twins fought to try to buck the foreign exchange markets and in so doing gave George Soros five billion good British pounds!

But he is a very bright spark about how markets work – after all he makes a lot of money that way.

And I was fascinated to read in the FTWealth  ideas column that he has a view about bubbles as well. To him every bubble has two components.

The underlying trend in reality is one, and the other is a misconception relating to that trend. Boom and bust happen, he believes, when a trend and a misconception “positively re-inforce each other.”

Well, I’m, not going to try to explain that. You’re right, it’s because I am not quite sure myself what he is talking about. Essentially I think it is about the propensity we all have to see what we want, rather than what is there.

But what it did do is remind me of my discussions about truth. That truth itself is hard to find, or really define. And that we need certainty and so make truths of what makes us feel safe.

Well, anyway, that’s what I think. and I’m sure he is right.

Even if he does think of himself as a failed philosopher.

Joseph Harris – Debt Control Man

http://www.controlyourdebtcrisis.co.uk

Control Your Debt Crisis on Your Own Terms

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