George Soros Is Not Making Sense

George Soros Is Not Making Sense

By Brad Cornell

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

George Soros spoke at an economic forum in Sri Lanka on Thursday. The legendary investor said that global markets currently face a crisis that could be compared to the one seen in 2008.  This is makes no sense.  What made the 2008 recession so deep and long was that if affected virtually every major financial institution worldwide.  The housing related debt was so deeply embedded in those institutions that confidence it their financial viability was threatened and many actually failed.  Due to the central role of financial institutions in modern economies, the result was a worldwide crisis.
This does not happen when there is simply a drop in equity prices.  Prices fall, we all get poorer, economic activity is depressed for a while and then we move on.  If Soros wants a better analogy, it would be 2001 when stock prices dropped dramatically and there was a short recession, but no financial crisis.  Even that though is an exaggeration.  Although stock prices are down, the drop, at least thus far, is not comparable to 2001.

Bottom line - George Soros is wrong on this one.

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

Updated on

No posts to display