As George Soros announced a $50m campaign to fund efforts to squash free market zealotry among market participants and politicians, Robert Johnson, the former Soros Fund Management managing director he’s chosen to head the effort had this to say:
“The Keynesians were romantic about the possibilities of governments. The free-marketers were romantic about the possibilities of markets. But the policies in neither camp have much validity at this point.”
So it appears Messrs Johnson and Soros are aware that they have their work cut out for them. This issue is not only about economic theory but also regulation and what it means for global financial practice overall. But in the end, it will come back to refining economic theory to inform new political practice, which market participants will quickly engineer their way around and take their profits.
Much like Soros and Johnson have always done so well. Which is why this issue is so complicated. At least these gentlemen are using their free-market-attained riches to re-evaluate and perhaps help find a less dismal endgame for the global economy. Good Newsweek insight on the topic here.