Table of Contents

Foreword to the New Edition
by Paul A. Volcker xi

Foreword to the First Edition
by Paul Tudor Jones II xv

New Preface xix

New Introduction 1

Part One Theory

1. Reflexivity in the Stock Market 49

2. Reflexivity in the Currency Market 73

3. The Credit and Regulatory Cycle 85

Part Two Historical Perspective

4. The International Debt Problem 95

5. The Collective System of Lending 107

6. Reagan’s Imperial Circle 115

7. Evolution of the Banking System 123

8. The “Oligopolarization” of America 133

Part Three The Real-time Experiment

9. The Starting Point: August 1985 145

10. Phase 1: August 1985–December 1985 153

11. Control Period: January 1986–July 1986 201

12. Phase 2: July 1986–November 1986 241

13. The Conclusion: November 1986 295

Part Four Evaluation

14. The Scope for Financial Alchemy: An Evaluation of the Experiment 307

15. The Quandary of the Social Sciences 317

Part Five Prescription

16. Free Markets Versus Regulation 325

17. Toward an International Central Bank 333

18. The Paradox of Systemic Reform 351

19. The Crash of ’87 355

Epilogue 371

Notes 377

Appendix 381

About the Author

GEORGE SOROS is Chairman of Soros Fund Management, which serves as the principal investment advisor to the multibillion-dollar Quantum Group of Funds. Soros's flagship, Quantum Fund, is recognized as the most successful investment fund ever, returning an average 31 percent annually for more than thirty years. Soros has been an important philanthropist since 1979. His charitable foundations are active in more than fifty countries and spend nearly half a billion dollars each year to support projects in education, public health, civil society development, human rights, and many other areas.

Reviews

“…contains a detailed description of his trading methods and repays careful reading.” (Investors Chronicle, 1st April 2005) “…these updated classics are packed  with investment wisdom…” (What Investment, November 2003)

"Wer genau wissen will, wie das ungarische Finanzgenie gegen das Pfund spekulierte, kommt hier voll auf seine Kosten. In seiner Alchemistenküche gibt George Soros fantastische Einblicke in den Entscheidungsprozess eines mit allen Wassern gewaschenen Spekulanten." (WERTPAPIERE - Das Börsenjournal, 4. Dezember 2003)