George Soros' Speech at 2013 Boao Forum
After the bankruptcy of Lehman Brothers in 2008 financial markets in the United States actually started to melt down and had to be put on artificial life support. They have been in what I call far-from-equilibrium territory ever since.
The bankruptcy of Lehman was also the bankruptcy of prevailing economic theory, notably the theory of rational expectations and the efficient market hypothesis. The authorities succeeded in holding financial markets together and the estate of Lehman has been liquidated but the bankruptcy of economic theory has not been resolved.
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