- Hardcover: 288 pages
- Publisher: PublicAffairs; 1 edition (December 2, 1998)
- Language: English
- ISBN-10: 1891620274
- ISBN-13: 978-1891620270
- Product Dimensions: 9.6 x 6.4 x 1.2 inches
This book is highly philosophical and takes a while to digest. It is not the typical investment book but rather the detail elaboration of the concepts Soros has borrowed and modified in his life. The concepts protrayed are a reflection of his investment philosophy and his view of the capitalistic world today.
"The Crisis of Global Capitalism" is split into 2 halves - the first half deals with the concepts themselves and are highly conceptual, the second half applies these concepts to the present capitalist system and highlights practical examples.
In short, Soros does not believe in equilibrium to exist as a final state but rather uses 'reflexivity' to describe how the market works. Reflexivity is the 2 way feedback mechanism between perception and reality. The former drives movement in the market. In a way, social forces and perception largely determine economics.
Soros believe that the current system will break down one day because of the huge growing perceptual differences that causes large swings. One day, the swings will go beyond the point of return (like a rubber band), causing the system to snap and crumble. Soros believes that it is necessary for an open society (another concept) where a proper feedback mechanism is in place to keep the swings small or at least in check.
*Note that my summary here is based on my interpretation of his writings and may not be representative. This is because I recognise my inadequacy to understand fully his concepts well.
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