Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH -- Monday, 4 June 2012 [View all]FarCenter
(19,429 posts)7. Why People Are Going Nuts Over The New George Soros Speech On Europe
So you have to ask: Why is this speech going nuts?
Well there's a lot in it for people to like. He gives a nice roundhouse kick to the Germans, which is usually pretty popular. And he says that the Eurozone has 3 months to fix the crisis, which provides a perfect hook for headline-writers.
But what's special about the speech is his characterization of the Euro as being itself being a "bubble."
Now the word "bubble" gets abused a lot. Every little boom is called a bubble these days. And things that have nothing to do with market valuations (like the big pile of student loan debt being taken on) get called bubbles improperly.
But Soros is onto something here.
Let's back up for a second. A nagging question that we've had is: Why did it take so long for the Euro to go into crisis? This may seem like an absurd thing to say, since the common currency has barely been around longer than a decade. And yet that seems like a long time, given that from the moment each country gave up fiscal sovereignty, they relegated themselves to, as Paul Krugman has characterized it, the same fiscal status as a third world country, having to borrow in someone else's currency.
But markets ignored this fact for a long time.
Well there's a lot in it for people to like. He gives a nice roundhouse kick to the Germans, which is usually pretty popular. And he says that the Eurozone has 3 months to fix the crisis, which provides a perfect hook for headline-writers.
But what's special about the speech is his characterization of the Euro as being itself being a "bubble."
Now the word "bubble" gets abused a lot. Every little boom is called a bubble these days. And things that have nothing to do with market valuations (like the big pile of student loan debt being taken on) get called bubbles improperly.
But Soros is onto something here.
Let's back up for a second. A nagging question that we've had is: Why did it take so long for the Euro to go into crisis? This may seem like an absurd thing to say, since the common currency has barely been around longer than a decade. And yet that seems like a long time, given that from the moment each country gave up fiscal sovereignty, they relegated themselves to, as Paul Krugman has characterized it, the same fiscal status as a third world country, having to borrow in someone else's currency.
But markets ignored this fact for a long time.
Read more: http://www.businessinsider.com/george-soros-speech-goes-viral-2012-6
Edit history
Please sign in to view edit histories.
68 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
That is what the hospital doctor told Auntie 4 years ago when she went in with blocked circulation
kickysnana
Jun 2012
#9
Leaked Documents Reveal Major Speculators Behind 2008 Oil Price Shock: Hedge Funds, Koch, Big Banks,
Demeter
Jun 2012
#5
That chart makes it look like their long and short positions almost cancel each other out.
tclambert
Jun 2012
#20
Mitt Romney’s Partner in Crime: Ed Conard’s Unintended Consequences By: Dean Baker
Demeter
Jun 2012
#21