The Speculation Economy: How Finance Triumphed Over Industry

In his new book, The Speculation Economy, George Soros argues that the global financial system has become a self-referential system that is no longer tied to the real economy. This has led to a dangerous bubble that is poised to burst.

Soros begins by outlining the history of the financial system, from its origins in the Italian city-states of the Renaissance to its current incarnation as a global network of interconnected markets. He shows how the financial system has evolved over time to become increasingly complex and opaque.

The Speculation Economy: How Finance Triumphed Over Industry

by Lawrence E. Mitchell

4.5 out of 5

Language	:	English
File size	:	1916 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	680 pages
Lending	:	Enabled

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Soros argues that the deregulation of the financial system in the 1980s and 1990s has led to a dangerous increase in speculation. This speculation has been fueled by the rise of new financial instruments, such as derivatives, which have allowed investors to bet on the future value of assets without actually owning them.

Soros warns that the speculation bubble is unsustainable and that it is likely to burst in the near future. This would have devastating consequences for the global economy. Soros calls for a new regulatory framework for the financial system that would reduce speculation and protect the real economy.

The Speculation Economy is a timely and important book. It offers a clear and concise analysis of the current financial crisis and provides a roadmap for how we can avoid future crises. Soros is one of the world's leading financial experts, and his insights are essential reading for anyone who wants to understand the global economy.

Table of Contents

• Chapter 1: The Rise of the Financial System
• Chapter 2: The Deregulation of the Financial System
• Chapter 3: The Rise of Speculation
• Chapter 4: The Bubble Bursts
• Chapter 5: A New Regulatory Framework for the Financial System

Chapter 1: The Rise of the Financial System

The financial system has its origins in the Italian city-states of the Renaissance. These city-states were the first to develop a system of banking and credit that allowed merchants to finance their trade. The financial system gradually spread to other parts of Europe and eventually to the rest of the world.

The financial system has evolved over time to become increasingly complex and opaque. In the early days, the financial system was primarily used to facilitate trade. However, over time, the financial system has become increasingly used for speculation.

Chapter 2: The Deregulation of the Financial System

The deregulation of the financial system in the 1980s and 1990s led to a dangerous increase in speculation. This deregulation was motivated by the belief that the financial system was self-regulating and that it did not need government oversight.

The deregulation of the financial system has had a number of negative consequences. First, it has led to a significant increase in the level of debt in the global economy. Second, it has created a system that is more vulnerable to financial crises.

Chapter 3: The Rise of Speculation

The rise of speculation in the global financial system is one of the most important developments of the past few decades. Speculation is the practice of buying and selling assets in the hope of making a profit. Speculation can be a useful way to allocate capital, but it can also lead to financial bubbles and crises.

The rise of speculation has been fueled by a number of factors, including the deregulation of the financial system, the development of new financial instruments, and the rise of global capital flows.

Chapter 4: The Bubble Bursts

Soros argues that the speculation bubble is unsustainable and that it is likely to burst in the near future. This would have devastating consequences for the global economy.

Soros identifies a number of factors that could trigger the bursting of the bubble, including a rise in interest rates, a decline in the stock market, or a major geopolitical event.

Chapter 5: A New Regulatory Framework for the Financial System

Soros calls for a new regulatory framework for the financial system that would reduce speculation and protect the real economy.

Soros proposes a number of specific reforms, including:

• Raising capital requirements for banks
• Limiting the use of derivatives
• Creating a new international regulatory body

Soros argues that these reforms are necessary to prevent future financial crises.

The Speculation Economy is a timely and important book. It offers a clear and concise analysis of the current financial crisis and provides a roadmap for how we can avoid future crises. Soros is one of the world's leading financial experts, and his insights are essential reading for anyone who wants to understand the global economy.

The Speculation Economy: How Finance Triumphed Over Industry

by Lawrence E. Mitchell

4.5 out of 5

Language	:	English
File size	:	1916 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	680 pages
Lending	:	Enabled

FREE